There is currently much interest in the circular economy as a framework for transition from a linear take-make-dispose model of production and consumption, to a circular model which decouples economic growth from environmental degradation and natural resource consumption. However, there is limited understanding of how this applies to a city context, especially from a spatial perspective and taking into account the multitude of urban governance arrangements at various levels. In this paper we examine evidence from 28 (out of 32) planning authorities in London to understand what government for the circular economy of London exists and how governance shapes it at the local level. We discuss current planning tools and uncover the intricate politics of intra-, inter-and above-municipality lines of power involved in implementation. The paper examines how the current construction of circular economy knowledge in planning, or its governamentality, can be used as power; and how indicators to measure performance can generate tensions between central and local tiers of government, underpinning a wider neoliberal ideology. Finally, we reflect on what austerity localism and the politics of scale might mean for the planning and governance of circular economy in cities.