Economy 26 January 2013 Boris Johnson: Drop the hair shirt approach, George Osborne In the wake of the negative GDP figures, the London mayor joins the chorus of voices questioning austerity. Sign up for our weekly email * Print HTML Et tu, Boris? On Thursday, Nick Clegg stuck the knife into George Osborne's reputation for economic strategy by declaring that the coalition had cut capital spending too harshly in its early days. Yesterday, in the wake of GDP figures showing the economy shrank by 0.3 per cent in the final quarter of 2012 - pushing Britain closer to a triple-dip recession - Boris Johnson also publicly questioned the Chancellor's appraoch. From Davos, he said it was time to "junk the rhetoric of austerity" in favour of boosting jobs and growth. "The single biggest inhibitor of demand is lack of confidence. If only some of the people in this room would invest some of the cash in their balance sheets we would see that confidence rewarded in a virtuous circle." Johnson carefully moderated his criticisms by ostensibly directing them at the Bank of England, saying: "There is huge potential in the UK. It is important we have the spirit of confidence. Some of the mutterings from Threadneedle Street are not the stuff to give the troops. We need investment in housing and transport, things that make a big difference." While he supported Osborne's deficit-reduction plan, Johnson said he wanted more investment in growth-boosting infrastructure measures. He added that "the hair-shirt, Stafford Cripps agenda is not the way to get Britain moving again". In the near future, the Guardian reports, Johnson's new economic adviser Gerard Lyons will publish the Mayor's "seven-point plan" for London, which includes building a new airport and hundreds of thousands of homes, as well as investing in transport infrastructure. › How Barclays chiefs tried but failed to keep their names quiet Boris Johnson. Photo: Getty Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics. Subscribe from just £1 per issue More Related articles Leader: Labour is failing. A hard Brexit is looming. But there is no need for fatalism Theresa May's Article 50 letter: what she said, and what she meant In Birmingham after the Westminster attack: "You can't paint everyone with one brush"