The London Development Agency is to be axed by Boris Johnson as part of the most radical shake-up of the capital's government since the mayoralty was created 10 years ago.
The regeneration body, which employs nearly 400 staff and has an annual budget of nearly half a billion pounds, will be wound up and its key functions taken over by City Hall.
Its abolishment is part of a wider reform package announced today to give the Mayor more powers over business aid, housing, policing rail services and the Olympics.
The LDA came under heavy fire during the end of Ken Livingstone's reign. Independent reports found no evidence of cronyism or corruption, but concluded that it failed to keep proper records or properly evaluate publicly-funded projects.
Power will be devolved from Whitehall to City Hall and, in a "double devolution" move, from Whitehall to London boroughs.
The plan also envisages a more powerful London Assembly to better hold the Mayor to account.
