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Confidence among London businesses tanks as LCCI calls for infrastructure spending

Businessowners in London have called for greater reassurances from the government about the UK’s economy prospects according to a new survey by the London Chamber of Commerce and Industry (LCCI).

The quarterly Capital 500 report, which was carried out by LCCI and Comres, canvassed the opinions of 504 London business leaders and found that business confidence in the capital plumbed the lowest levels since the survey began in 2014.

According to the report, 39% of the businesses surveyed expected the UK economic growth to weaken, representing a 34 point drop from Q2, 23% of Capital 500 companies were anticipating a drop in the capital’s economic prospects, itself a 31 point decline on the previous quarter.

The findings have led the LCCI to outline a number of recommendations for the government relating to ways in which it could go about boosting business confidence amongst London’s business leaders.

These include:

• The development of a cross-Whitehall strategy for export growth to promote and expand the opportunities for UK firms in global markets
• Ensuring that the Apprenticeship Levy can be used to support high-quality workplace and vocational training, and providing larger firms with the option to transfer electronic vouchers down the supply chain
• A sustained effort by the Mayor of London to work with business groups to assess the impact of the impending introduction of new business rates
• Using the Autumn Statement to show commitment to strategic investment in key London infrastructure projects such as Crossrail 2 and the a new runway at Heathrow or Gatwick.

Chief Executive of London Chamber of Commerce and Industry Colin Stanbridge commented: “London businesses are taking a pragmatic and level-headed approach to the Referendum outcome. The result may have been unsettling for some, but we are not seeing any sense of panic.

“There is clearly no room for complacency as we take the first steps towards a post-Brexit future. It is of vital importance that Government takes steps to reduce uncertainty, and boost business confidence in the short term.

“For London, that means investing in strategic infrastructure and addressing issues such as recruiting and retaining skilled staff in a post Brexit-era.”

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