HR Industry News

London's reputation damaged for business

— 19 June 2008 —

A skills gap and poor transport infrastructure have been blamed for London’s damaged reputation as an attractive business location.

A survey of 118 senior executives found that businessmen and women are becoming increasingly pessimistic due to the credit crunch and tax reforms, but the biggest causes for concern were the road and tube network, and the increasing skills gap.

72% of those polled said that they were unable to fill certain skilled positions, and that they were hoping the new migrant points system would help. 64% said that the transport infrastructure needed priority investment from the government, while 28% said they were pessimistic over their company’s prospects over the next 6 months.

Richard Reid, London chairman of KPMG Europe, who carried out the survey with the CBI, said that “this report clearly shows that businesses in London are feeling the impact of the downturn in the economy. Many of its findings should be setting off alarm bells for policy makers that urgent action is needed to tackle the weaknesses that will compromise London’s reputation and competitiveness.

“Tackling skills shortages will be helped by education authorities equipping students with basic and employability skills that businesses need, not just paper qualifications.”

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