London is the best place in the world to do business according to companies with a presence in the city. Thanks to London’s access to global markets, an unrivaled talent pool and proximity to clients, nine in ten London businesses rate the city as a great place to do business compared to other global cities.
The survey of London businesses, conducted by the Confederation of British Industry (CBI) and accountants KPMG, shows that 92% of businesses rate London as a “good” or “very good” place to do business compared with other global cities.
This is up from 86% in the last CBI survey, showing that London firms’ confidence is back on track to reaching the high 95% recorded before the global financial downturn.
Jobs
Thanks to London’s skilled population, firms based in London are more bullish about hiring new staff. London-based companies say they expect to hire staff “as normal” in 2013, after a period of focusing on just hiring essential recruits in the first half of 2012.
“It’s really encouraging news for London that companies are now getting back to recruiting as normal,” says Sara Parker, the CBI’s Director for London. “2012 has been an upbeat year for the capital and many firms are feeling buoyed by our Olympic success and are positive about London as a place to invest and do business.”
When asked what the capital’s main strengths are, London businesses listed access to global markets, London’s skills and talent pool, and the proximity to customers and clients as the biggest selling points. These reasons indicate that London’s position as a global city will remain solid over the next few years.
London 2012 Games
The success of the London 2012 Olympic and Paralympic Games has also given firms a welcome boost to confidence. London businesses believe the longer-term legacy of the Games will be positive and that post-Olympic London is a great place to do business in.
Indeed, 92% of firms say that the Games have helped promote London internationally and a quarter say they have benefited directly. East London has fared particularly well, with 87% of businesses saying the area has been given a positive image as a result of the Games.
“London is becoming an even more attractive place to invest and do business, especially with the added glow of a successful Olympic Games under the city’s belt,” says Richard Reid, London chairman of accountancy firm KPMG, which conducted the survey alongside the CBI.
Businesses also note a marked improvement in London’s transport infrastructure over the last six months. Massive investment in London’s transport infrastructure was made ahead of the Games, during which 60million journeys on the public transportation network were recorded, leaving a lasting improvement for Londoners and visitors alike.
“Transport is vital to the capital’s strength, so it’s good to see that firms think that most areas are improving,” adds Reid.
Turning to the future, London’s place as a long-term business destination seems secure: a huge 95% of survey respondents say they expect their business will still be based in London in five years’ time.
Find out how your business could benefit from moving to London – contact the team at London & Partners for more information.
