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London ‘still a great place to do business’


London has long been seen as a good place to do business – hence the popularity of serviced offices in the capital and other commercial property.

And based upon the findings of a new study, the ongoing economic downturn and eurozone crisis are having little bearing on the status of the city in the global world of business.

Research conducted by the Confederation of British Industry (CBI) and KPMG suggests that companies continue to view London as being an ideal place to construct a business.

The number of firms rating London as a good place to do business has risen from 83 per cent in December 2011 to 86 per cent – offering a seal of approval for the capital.

Among small and medium-sized companies the increase is even greater – from 74 per cent in December to 81 per cent in the latest CBI/KPMG study.

Meanwhile, the number of respondents who believe London’s status will be at least the same or will have improved in five years has increased from 78 per cent to 83 per cent.

This is the highest percentage since December 2006 when the index reached 88 per cent – showing that firms in the metropolis have confidence in their city.

Companies highlighted the same strengths as of six months ago, with access to skills, the global markets and customers being London’s main competitive advantages.

However businesses said they wanted to see improvements on costs, transport and tax issues, in order to support their long-term growth.

Richard Reid, London chairman of KPMG, said it is “encouraging” that the number of London companies rating the capital as a good place to do business has increased from six months ago, especially among smaller firms.

“The ease of access to global markets, talent pool and proximity to customers are factors which consistently impress companies based in the capital,” he stated.

“Generally businesses are happier with transport in London, improvements on the Tube are very welcome and many large rail projects are already underway – which will all enhance the ability to do business in our domestic markets.”



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