The problems of Northern Rock could affect the international image of London as a financial centre, Lord Jones, trade minister, warned yesterday. Financial Times

Lord Jones, the former head of the CBI employers’ body, said television pictures of queues outside the troubled mortgage bank’s branches had raised questions about whether London was still the best place in the world to do financial business.

'It is an issue, and I am not going to pretend it isn’t. This is where I am not a very good politician,' He said one of his jobs was to reassure international markets that 'what you see on the television screen and the reality of the situation are two different things'.

When he visited India and Russia shortly after the Northern Rock crisis began, it was the first issue business people raised with him.

His reply was that 'no one has lost a penny on Northern Rock, yet', thanks partly to 'very swift action from the chancellor'.