Boris – wrong on Wonga

By Mark Ferguson / @markfergusonuk

Boris Johnson has been having a time to forget lately (cominging disappearing at crucial moments, and claiming that London transport is operating normally when it’s anything but) and he’s walked into another minefield today.

TFL has receives sponsorship in order to fund the cost of maintaining a service overnight for New Year’s Eve, allowing revellers to return home late without the expense of cabs. However, if they get involved with this year’s sponsors then they may still pay through the nose in the long term.

Loans Company, Wonga, will be a key sponsor for Transport for London over Christmas and New Year – despite charging 2689% APR. In many ways this seems like sheer opportunism at a time of year when so many Londoners will be struggling for cash.

Ken Livingstone was critical of the move, calling it a clear demonstration of Tory values:

“It’s hard to think of a clearer demonstration of the values of today’s Tory party than Boris Johnson’s decision to sell prime time advertising space on London’s buses and tubes to a loan company known for charging 2689% APR.”

“While millions enter Christmas and the New Year with concerns over their jobs and family finances, our Conservative Mayor is busy plastering the capital with adverts for loans companies who profit from increasing the debts of the poorest in society.”

Even Johnson himself thinks that the company are charging “extortionate” rates of interest. Speaking to LBC this afternoon, he said:

“People should be aware of the extortionate rates of interest that they can charge and people should not enter into irrational or unwise debt obligations.”

Is this another u-turn from London’s gaffe prone mayor? Does he really not know if this is a good idea or not? Or was he blinded by the lure of Wonga?