The London official encouraged the funding from the London Development Agency (LDA), which includes £20 million going to support businesses, £500,000 to promote the capital as a tourist destination and £2 million in upgrading transport and providing jobs.

Money allocated to business support will see a range of finance programmes introduced for start-up companies and small firms.

Johnson says: ‘The current economic downturn makes it all the more clear that the refocusing of the LDA’s investment programme towards promoting jobs, skills and economic growth is the right approach.’

The mayor adds that the move will help the city to come out of the economic downturn in a stronger position.

Harvey McGrath, chair of the LDA, says the organisation has placed the city’s businesses as its ‘highest priority’.

The LDA has recently developed three business parks for businesses in London which are relocating from the Olympic site.