Diplomat rebuts Trump barb

Donald Trump has been seen inspecting his new London embassy - albeit in waxwork created by Madame Tussauds. Photo / Getty Image

The US ambassador to Britain has publicly defended his country's new London embassy after Donald Trump blamed its cost for controversially cancelling a visit.

Woody Johnson said America's new embassy did not cost US taxpayers "a cent" after properties were sold and insisted the move was needed because of the terrorist threat after the 9/11 attacks in 2001.

The President had earlier tweeted he would not visit London next month as planned because the original embassy was sold for "peanuts" and it was a "bad deal".

However, Britain's Foreign Secretary Boris Johnson blamed leading Labour figures for putting off Trump with their criticism.

The fallout came after Trump once again postponed a "working visit" to Britain in February.

Trump tweeted: "Reason I canceled my trip to London is that I am not a big fan of the Obama administration having sold perhaps the best located and finest embassy in London for 'peanuts', only to build a new one in an off location for 1.2 billion dollars. Bad deal. Wanted me to cut ribbon — NO!"

The US embassy has moved from Grosvenor Square in Mayfair to Nine Elms near Battersea, South London. The decision was actually taken by George W Bush, not Obama. It later emerged that the old US embassy was sold for £315 million ($595m), well below the £500 million that experts claimed it should have cost — appearing to back up Trump's criticism.

London Mayor Sadiq Khan said it appeared Trump "got the message" that many Londoners found "his policies and actions the polar opposite of our city's values of inclusion, diversity and tolerance. His visit next month would without doubt have been met by mass peaceful protests."