CBI: London business optimistic
Businesses in the capital are the most optimistic they have been in 18 months about prospects for the coming half-year, though they remain cautious about future investment and divided about London's longer-term status as a world city, a CBI / KPMG survey reveals today
The poll of senior executives shows that most firms still think the capital is a good place to do business, and more think so now (86%) than when the last survey was conducted in April (80%). Business performance has also improved, with fewer reporting falling business values (36%) than six months ago (59%).
Forty seven per cent of firms are optimistic about their future business prospects, which is the highest proportion since April 2008 (30%).
However, a perceived lack of government action on issues such as transport and skills, falling public sector investment and an overly burdensome tax and regulatory regime are seen by firms as threatening London's attractiveness as a place to invest and do business.
While a quarter of respondents say they see London's status improving in five years, another quarter think its standing will shrink compared with cities such as New York, Paris, Tokyo or Mumbai, and half say it will simply remain where it is.
