According to the latest CBI/KPMG London Business Survey, London’s growth will be pushed forward by its teach and creative industries over the next five years, with the professional and financial services giving them backup.
Over half of the businesses surveyed said they thought that East London, which includes Canary Wharf, the Royal Docks and Stratford, will play a key role in encouraging growth in the capital. The City, Shoreditch and Old Street were also noted by 44% of firms to be a key player in pushing growth.
There was a drop in economic optimism, though it still remains high. 65% are looking to the future positively, but this is in comparison to 70% last quarter. They were very pro-London though, with 79% saying it was a good place to do business.
There are still concerns about a lack of skilled workers and retaining the employees they already have. A little over half of businesses surveyed are planning on bringing new employees in with just 15% carrying on with a recruitment freeze.
The CBI London Director, Lucy Haynes, said: “As the recovery gathers steam, it’s encouraging that London firms continue to be upbeat about the future and are looking to expand.
“The technology and creative industries have shot up the ladder as some of the fastest-growing sectors in London, with the majority of businesses seeing them as holding the key to the capital’s future growth.
“However, if we are to attract and retain the brightest and best minds to Tech City and to the rest of London, we urgently need to tackle the endemic housing problem the capital faces. Freeing up land and building more homes is critical to dealing with this. Businesses’ concerns, regarding skills, the level of infrastructure investment and the corporate tax rate, also need to be addressed to keep the capital competitive internationally.”
Photo by Annie Mole.