Yesterday Boris used his Telegraph article to promote London as the economic engine of the country, arguing that investment in London’d infrastructure is good for the country as a whole. You can read the article in full here.
Boris was questioned about this plan by the BBC’s Andrew Neil (see below), at one point Andrew asked Boris where public spending would be cut to fund the investment in London, Andrew missed the point and with all due respect to my friend and Mayor, Boris didn’t properly exlain the answer.
If investment is made in London, it will generate more tax revenue for the treasury which can then be spent in the regions. A slightly smaller slice of a much bigger cake still gives you more cake.
Currently London is a net contributor of £19 billion per year. No where else in the country could investment realistically hope to generate £4-5 billion a year of tax. No one is arguing for a reduction in spending in the regions but while labour is available, investing in London will pay dividends for the whole nation.