Speaking at the launch of a report by the London Chamber of Commerce and Industry [LCCI] he was responding directly to concerns raised by Colin Stanbridge, chief executive of the LCCI, about the impact of the London Local Enterprise Partnership [called London Enterprise Panel].

Stanbride said, "In certain parts of the country, the jury is still out on the effectiveness of LEPs. In London, we don’t seem to have seen much evidence of anything happening with the LEP. It doesn’t seem to have made any difference to people’s lives."

Hammond replied saying: "In certain parts of the country they are beginning to work much more successfully than we thought they would but you are right, the jury is out in other parts of the country” He added that he thought the impact of the London LEP would be felt after the 2012 Olympic Games, when it would drive the regeneration legacy.

The London Economic Panel is co-chaired by mayor Boris Johnson and Harvey McGrath, chairman of Prudential but its membership was only announced in February of this year.