Two-thirds of businesses will leave London in the next 15 years due to rising costs, crumbling transport and the threat of terrorism.
According to a survey carried out by MORI for the Chartered Institute of Management Accountants (CIMA), rising costs mean only 38 per cent of companies think it very likely that their company will still be based in London in 15 years time.
The survey of 500 senior financial managers and directors showed that more than 40 per cent of organisations claimed improving transport would have the biggest positive impact on their business, and 58 per cent cited it as ‘one of the worst things about doing business in London’.
The current threat of terrorism in London was also considered a key risk of doing business in the capital, cited by 40 per cent of respondents.
Of those that would leave London, almost half would relocate to the regions or home counties, and 11 per cent would leave the UK altogether.
Charles Tilley, chief executive of CIMA, said the findings were a real concern and companies were having to make tough decisions.
"The Government needs to act - otherwise I’m sure other cities and countries will be only too happy to accommodate companies leaving the capital," he said.