Boris Johnson warns Osborne not to cut investment in London

Ahead of the first budget of the new government, the Mayor of London, Boris Johnson has today urged the Chancellor George Osborne not to cut spending in the capital.

A new report published today commissioned by GLA Economics has found that investment in major infrastructure projects like Crossrail and the Tube upgrades is crucial for London to retain its competitiveness.

Reducing the national debt will require a combination of spending cuts, tax rises and critically, investments in key infrastructure projects, the report concluded.

The report was commissioned by GLA Economics and produced by Professor Tony Travers and a team at the London School of Economics (LSE) to look at public spending priorities in London found that:

•Capital spending in London appears to be at a low level in relation to GDP
•Public capital spending appears relatively low as compared to other world cities;
•Investment in infrastructure is key to increased productivity, output and tax revenue.

Jonson has written to the Chancellor outlining his priorities for London in advance of the emergency Budget on 22 June.

Boris Johnson said: “I want to remind the Government that growth is essential to the health of our public finances. Only by continuing to invest in London and the South East- the engine room of the national economy- will the nation as a whole be able to grow its way out of trouble. The UK cannot afford the cost to the economy if the capital is starved of vital investment in infrastructure projects like Crossrail and the upgrade of the Tube.”