Businesses set to leave expensive London

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.

By Michael Millar

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