Boris warns: All this panic will scare off big business

BORIS JOHNSON today raised fresh fears that businesses could be driven away from London by the gloom surrounding the financial markets.

The Mayor told the London Assembly it was vital to continue to invest in infrastructure such as Crossrail to encourage FTSE 100 companies to base themselves in the capital. He also said that Tube upgrades were "vital" to London's long-term competitiveness.

Mr Johnson said: "Thre is a great deal of alarm and the whole thing is very much gloomier than it need necessarily be.

"We need to be careful we don't inadvertently create the next crisis rather than solving the last one and don't drive away FTSE 100 companies. It is vital that we don't incapacitate our financial services sector which is of great importance to this country."

But the Liberal Democrats said Mr Johnson should draw up a firm plan of action rather than downplay the situation.

Mike Tuffrey, the leader of the group, said: "There'll be a real, profound effect on London and its economy and I've not seen or heard a word from the Mayor as to how London should respond."