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London mayor Boris Johnson has said he will freeze recruitment at the Greater London Authority (GLA) except for essential posts.

The move comes as the GLA reassess its budget and attempts to cut expenditure to prevent increases in council tax.

Mr Johnson also signalled that about 100 jobs would be cut as the GLA gets "rid of some very expensive bathwater".

He said: "Our objective in these reforms is, of course, not to throw the baby out with the bathwater."

"We now have the chance to get rid of some expensive bathwater, while keeping the bouncing baby that is this young and confident institution," he added.

According to the Economic Times, rising tax and the increasing regulatory burden in Britain's capital is threatening its status as a leading financial centre.

The news provider points out firms are relocating from the City and it says that London needs to respond quickly before the trickle of businesses moving out turns into a flood.

It said that financial institutions boost recruitment, property markets and create local jobs.

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