London-based businesses are bullish about their future prospects, with 58% planning to expand their business in the next 12 months, according to a survey.
However, the poll, carried out by the CBI and KPMG, revealed that 85% of London businesses criticised the capital’s transport system for being unreliable.
In addition, of the 125 businesses surveyed, 78% consider the cost of doing business in London excessively steep. Concerns were also expressed about the impact of the 50% rate of income tax, with 57% believing it could prevent businesses from using London as a base or even staying in the UK.
85% of London businesses criticised the capital’s transport system for being unreliable
And the survey reveals a shortage of skilled workers in the capital, with 44% of business admitting they could not find enough skilled staff.
Director of CBI London Nigel Bourne says: “After a second year in office, businesses think the Mayor is making a positive impact on people’s perception of the city, and on its transport network. But neither he nor the government should be complacent.
“We must continue investing in London’s vital infrastructure and ensure it can compete with other cities globally. Nurturing home-grown talent is also going to be important during the recovery.”
Bourne adds: “Even though most companies rate the capital as a good place to do business, the cost of operating a business in London, the level of taxation and the transport system are all seen as denting its ability to compete on the world stage.”
Richard Reid, London’s chairman of KPMG, says: “With over half of the capital’s businesses planning to expand and increase spending in the second half of this year it is clear that London will continue to be the driver of economic growth in the UK.”
On the topic of London’s transport, Reid says: “The Government needs to continue to work with the private sector to ensure that much-needed investment projects, such as Crossrail happen, and that we don’t slip behind other global centres.
“London is now in competition with the fast-growing economies of the Far East, who devote more of their GDP to infrastructure investment than any other region in the world. How we approach the problems of an ageing transport network in London will determine our future attractiveness and competitiveness.”
