Boris: London is able to weather lean times

Boris Johnson was upbeat today about London's prospects of weathering the credit crunch.

In an interview with Square Mile magazine, the Mayor predicted that the capital's solid skills base and attractiveness to top global talent would pull it through turbulent times to emerge still the world leader in the financial sector.

However, he warned against over-regulation which would make things worse in future.

"If you look at the London economy - the diversity and the depth and range of skills we've got and the fantastic success we've had in attracting people of talent from around the world - I certainly do think London is very well placed to weather it," Mr Johnson said. "Quite how bad it is going to be ... obviously your guess is as good as mine. But if people show some confidence and look at the fundamentals we'll get through it all right.

"We've got to maintain our lead in spite of the adverse circumstances by making sure we don't make the mistake they made of over-regulating in response to the last crisis thereby creating the next crisis."

The Mayor said he was taking guidance from City figures such as Bob Diamond of Barclays Capital and he has asked a group of senior executives to produce a report this autumn on how London can sustain its position as the world's leading financial centre.