Boris Johnson: Mayor defends banking sector following HSBC money laundering allegations

By
Tim Shipman

11:25 EST, 22 July 2012

|

18:57 EST, 22 July 2012


Passionate: Boris Johnson today defended London¿s financial sector from international criticism following allegations of money laundering at HSBC

Passionate: Boris Johnson today defended London’s financial sector from international criticism following allegations of money laundering at HSBC

Boris Johnson launched an outspoken
attack yesterday on David Cameron and George Osborne’s handling of the
economy – demanding action to boost public confidence and growth.

The London Mayor criticised the Prime
Minister’s prediction that Britain will be saddled with austerity for
eight more years, warning: ‘There’s a danger of overdoing the gloom.’

And he said the Chancellor needs to
show more ‘political will’ to get foreign investors to fund
infrastructure projects in the UK.

Mr Johnson also demanded more reforms, advocated by Tory MPs, to make it easier to hire and fire staff.

And he said the Government must act
now to plan a new hub airport after ministers kicked plans for a third
runway at Heathrow into the long grass.

The Mayor spoke out after economists
predicted that figures this week will show the economy has shrunk for
the third successive quarter.

He told the BBC’s Andrew Marr Show:
‘The most important thing is for the economy to get back to growth and
for confidence to return. What I worry about is that people are losing
confidence, losing energy, losing enthusiasm.’

Asked about Mr Cameron’s claim last
week that spending cuts would continue until 2020, Mr Johnson added: ‘Of
course there’s a danger of overdoing the gloom. I don’t think there’s
any reason at all why it should go on for another eight years.’

The Chancellor last week announced
plans for £51billion of infrastructure spending but Mr Johnson made
clear he does not think it goes far enough.

‘I would like to see a very aggressive
campaign for more infrastructure investment,’ he said. ‘There are…
sovereign wealth funds around the world who are only too happy to come
and invest in this country. What it needs is the political will to get
on and do those projects.’

On the way out? A ComRes poll yesterday found that 44 per cent of voters want him removed at the next reshuffle, with only 20 per cent saying No

On the way out? A ComRes poll yesterday found that 44 per cent of voters want him removed at the next reshuffle, with only 20 per cent saying No

Mr Johnson is widely seen as a future
leadership rival to Mr Osborne and his words come while the Chancellor
is already at a low ebb.

Growth figures for the period between
April and June, published on Wednesday, are expected to show that the
double-dip recession has persisted. Philip Shaw, an economist at brokers
Investec, forecast a further slump in output of around 0.4 per cent.

The economy entered a technical
recession in the first quarter of 2012, with gross domestic product
declining by 0.3 per cent after a 0.4 per cent drop in the final quarter
of 2011.

Tory MPs are openly questioning
whether Mr Osborne should remain Chancellor. A ComRes poll yesterday
found that 44 per cent of voters want him removed at the next reshuffle,
with only 20 per cent saying No.

To make matters worse, John Longworth,
director-general of the British Chambers of Commerce, yesterday accused
ministers of failing to take the ‘sustained, long-term action’ needed
to boost growth.

'You don¿t become Chancellor because you want to be Mr Popular': Culture Secretary Jeremy Hunt

‘You don¿t become Chancellor because you want to be Mr Popular’: Culture Secretary Jeremy Hunt

In a newspaper article, he wrote:
‘Politicians seem to believe that businesses must be willing and ready
to “strain every sinew”, without doing the same themselves.

‘Businesses are tired of indecision
and equivocation. They are tired of political short-termism, electoral
calculation, and the privileging of presentation over substance.’

Meanwhile, a left of centre think-tank
says today that the Chancellor’s economic strategy is deterring
businesses and consumers from spending.

The Institute for Public Policy
Research says the sluggish recovery from recession will see the UK’s
long-term growth rate reach only 1.7 per cent a year by 2015 – its
lowest level since the Second World War. That will cause the equivalent
of £165billion in lost output over 15 years, it says.

Britain’s historic average is 2.4 per cent and growth peaked at 3.5 per cent in the middle of the last decade.

Culture Secretary Jeremy Hunt rode to
Mr Osborne’s rescue. ‘You don’t become Chancellor because you want to be
Mr Popular,’ he said.

‘The job of Chancellor is to take
really tough decisions that have their payback many years hence when
you’ve taken the interests of the economy.

‘George Osborne has been one of the
bravest Chancellor in history, putting through a package of spending
cuts and as a result he has kept Britain out of the firestorm that has
engulfed the eurozone and many other countries.’

Does this prove he has a point?

Here’s what other readers have said. Why not add your thoughts,
or debate this issue live on our message boards.

The comments below have been moderated in advance.

The very same Boris Johnson who appeared on TV yesterday to announce that G4S are doing a fantastic job. The man’s a buffoon.

Thought it was the Labour party that caused all the financial problems, or was that all a load of lies, so you could condem your way into power?

Come on Boris, we dont want to see excuses, we want to see ACTION. Be a real man for once in your life and actually take some decisive action you old codger. . . some things never change.

America the EU with the UK are all equally guilty.

got to admire Boris, he tells it as it is.

Glad to see the Tories finally admitting that the global banking crisis began in the US. Because when they were in opposition they were falling over themselves to blame the Labour government.

Mister Mayor you can wish this problem away. There needs to be a thorough investigation of the banking sector lest you defer the day of reckoning.

Boris loves England. Good for him. always stands our corner and NEVER whinges.

I wish Boris Johnson was PM – I’d be able to sleep easy at night knowing that he would be willing to stand up and fight for us. He has the confidence to say what he feels.

Boris should be PM….end-of.

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