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Company Owners in Capital Feeling Upbeat
Listed under: News
Published: Monday, July 05, 2010
Optimism amongst business owners in London has risen significantly over the past year, according to a recent report from CBI/KPMG, with up to 53% feeling more positive about their prospects for the rest of 2010 – up from 47% six months ago.
The findings which reveal that 58% of companies are now planning to expand over the next 12 months, with 32% intending to do so in London, show that 80% currently believe the Capital is a good place to do business, compared to 86% in October 2009 and 80% last April.
Investment plans are also more positive than six months ago, with 31% intending to increase their spending on recruitment, training, equipment and product innovation over the next year, and 34% upping their marketing and promotion.
However, the survey also reveals a number of difficulties currently affecting London-based business owners, with 85% citing the Capital's poor quality and unreliable public transport system as one of their top concerns. Skills shortages amongst workers are also a major burden, seeing 44% of companies say they have found it difficult to find employees with the right qualifications over the past 12 months – up from 38% last year.
Concern about crime has eased among London’s businesses, however, after having peaked a year ago, with only 47% citing it as a problem, compared with 62% last year.
Commenting on the findings, Nigel Bourne, director of CBI London, says, “There is a growing sense of optimism among London’s businesses, with firms more upbeat about the coming six months. Even though most companies rate the Capital as a 'good' or 'very good' place to do business, the cost of operating a firm in London, level of taxation and transport system are all seen as denting its ability to compete on the world stage.”
He adds, “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.”
The findings which reveal that 58% of companies are now planning to expand over the next 12 months, with 32% intending to do so in London, show that 80% currently believe the Capital is a good place to do business, compared to 86% in October 2009 and 80% last April.
Investment plans are also more positive than six months ago, with 31% intending to increase their spending on recruitment, training, equipment and product innovation over the next year, and 34% upping their marketing and promotion.
However, the survey also reveals a number of difficulties currently affecting London-based business owners, with 85% citing the Capital's poor quality and unreliable public transport system as one of their top concerns. Skills shortages amongst workers are also a major burden, seeing 44% of companies say they have found it difficult to find employees with the right qualifications over the past 12 months – up from 38% last year.
Concern about crime has eased among London’s businesses, however, after having peaked a year ago, with only 47% citing it as a problem, compared with 62% last year.
Commenting on the findings, Nigel Bourne, director of CBI London, says, “There is a growing sense of optimism among London’s businesses, with firms more upbeat about the coming six months. Even though most companies rate the Capital as a 'good' or 'very good' place to do business, the cost of operating a firm in London, level of taxation and transport system are all seen as denting its ability to compete on the world stage.”
He adds, “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.”
