Boris Johnson says 'greed is good' in speech to honour Margaret Thatcher

London Mayor Boris Johnson hailed greed as a "valuable spur to economic activity" as he spelled out his vision of modern Thatcherism at a speech honouring the former prime minister.

Delivering the Centre for Policy Studies' annual Margaret Thatcher lecture, Johnson called for the return of selective schools in a message apparently aimed at the right-wing of the Conservative Party, which many believe he hopes to lead one day.

"I don't believe that economic equality is possible; indeed some measure of inequality is essential for the spirit of envy and keeping up with the Joneses that is, like greed, a valuable spur to economic activity," he said.

Thatcher's deregulation and privatisation policies sparked economic boom in 1980s Britain, followed by a 1990s recession.

Addressing comparisons between himself and the former leader, who died in April at the age of 87, Johnson said on Wednesday: "I realise that there may be some confusion in my prescriptions between what I would do, what Maggie would do, and what the government is about to do or is indeed already doing.

"I don't think it much matters, because the three are likely to turn out to be one and the same."