Boris Johnson began to stamp his authority on City Hall yesterday with the first firings of his administration. Financial Times

In the wake of the recent grants furore, the new London mayor asked Manny Lewis and Mary Reilly to resign as the chief executive and chair of the London Development Agency.

The move follows Johnson’s promises to improve the transparency and efficiency of the agency that promotes business development in the capital. The LDA’s reputation was damaged by allegations that it granted more than £2m to companies associated with Lee Jasper, the former mayor’s race adviser, which seemed to do little in return.

The efficiency of the LDA became a campaign issue and police are investigating seven organisations in connection with their use of the grant money, though Mr Jasper has been cleared of any wrongdoing.

During the campaign, Lewis tsaid that the claims about the LDA were 'politically driven' and 'undoubtedly' timed to coincide with Ken Livingstone’s bid to be re-elected mayor.