Gerald Ronson's fears over 'two-tier' UK society

Updated: 18:49 EST, 13 April 2010

Gerald Ronson has warned that Britain is creating a two-tier nation where London is divided from the rest, which could lead to significant unemployment and 'social unrest'.

Speaking at the Heron Group's annual property lunch in London, Ronson also expressed concern that the politicians do not seek to deal with the deficit in the public finances by coming down hard on enterprise.

'Entrepreneurs should not be targets. Entrepreneurship needs to be encouraged, not penalised and driven out of the country,' he said.

Ronson: Concerned that politicians deal with the deficit in the public finances by coming down hard on enterprise

The veteran developer - who has rebuilt his empire since the Guinness scandal of the 1980s --suggested it would not take much for the economy to 'slip back into recession' --and 'that's before the effect of inflation'.

Ronson said the panic of 2007-08 had changed the dynamics of the property market.

He called on the banks to support ' professional developers who know their business, where prudent development risk is justified'.