Lord Sadiq Khan has declared the start of a "new era" for London's nightlife as historic powers allowing City Hall to intervene in major licensing decisions come into force on Tuesday.

The new powers granted by Andy Burnham’s administration will allow the Mayor of London to call in certain licensing decisions made by borough councils.

The Mayor’s office will also make the final decision on applications deemed strategically important to London.

Lord Khan has vowed to use these powers - which have been compared to those held by the Mayor of New York - to deliver a new “pro-jobs approach” in a bid to grow the capital’s economy and support the growth of jobs in the hospitality sector.

Applications involving large venues, live music, later opening hours and major events could be called in by the Mayor where they are considered strategically important.

He is also set to formally consider the consultation responses on his draft London-wide Strategic Licensing Policy. The proposal aims to create a licensing system which is consistent and supportive of the capital’s culture, hospitality, events, and nightlife industries.

A final policy will be announced later this year.

London’s nightlife contributes more than £21 billion to the capital each year, but has faced a huge number of challenges in recent years.

In addition to rising business rates, hikes in minimum wage and national insurance, and alcohol duty increases, the hospitality industry has also faced inconsistent licensing rules and complex processes.

In Soho, the Mayor of London and the council have locked horns over licensing laws - including one proposal made by Westminster City Council to discourage people from “vertical drinking” outside pubs and other licensed premises.

Now, Lord Khan will have the power to intervene.

He is set to meet with Secretary of State for Housing, Communities and Local Government Angela Rayner at the music venue on Tuesday to celebrate the new powers.

The Mayor of London, Sadiq Khan, said: “Today is a hugely significant moment and marks the beginning of a new era for London’s nightlife.

“As Mayor I have always tried to be pro-jobs and pro-business and I’m determined to build on this. These new licensing powers create an opportunity to further champion London's amazing venues, particularly our hospitality industry.

“From today, thanks to the Government, I can step in and make decisions on licensing applications of particular importance for our economy, reputation and nightlife – allowing me to back the venues that make our high streets and communities thrive and help cement our city’s nightlife reputation - while keeping people safe and listening to communities.

“I’m looking forward to setting a new direction for our capital’s life at night, creating a more strategic and consistent approach to licensing

“It will bolster our capital’s reputation as a global nightlife destination and ensure that our hospitality, culture and nightlife can thrive, as we build a better London for everyone.”

The Secretary of State for Housing, Communities and Local Government, Angela Rayner said: "Nightlife is about so much more than a good night out. The musicians on stage, the staff behind the bar, the small businesses that depend on them – that's jobs, that's growth, and a big part of what makes London the world-famous city it is.

"So, we're giving the Mayor of London historic new powers over licensing decisions that have the biggest impact on the capital. It's about backing the venues and events that keep London buzzing."

Kate Nicholls, Chair of UK Hospitality, said: "This is a significant moment for London's world-class hospitality sector and I'm delighted to back the Mayor's pro-jobs approach, which will support a sector already employing half a million Londoners.

"I was pleased to lead the Government's licensing sprint which recommended these changes and it's encouraging that some of the most significant are being introduced so swiftly.

"We look forward to working with the Mayor to deliver on his commitment to support the hospitality sector in London."