London 'may struggle' to compete in business

News Article - 07 December 2007
Category: Business

Increasing red tape and poor transport networks will threaten the competitiveness of London businesses over the next five years, it has been claimed.

The London Business Survey, conducted by the Confederation of British Industry (CBI) and accountancy firm KPMG, found that two-thirds of business leaders believe roads, rail and airports need further investment in order to compete in the global business world.

Two-fifths of respondents also mentioned regulation and the cost of compliance as a barrier in business.

John Cridland, deputy director-general of the CBI, said that rising compliance costs are "worrying" as it will reduce the capital's ability to compete in the business industry.

"This will not only harm existing business in the UK which, in an increasingly global and mobile world, might be tempted to move away, but also deter fresh investors to the UK," he added.

Mr Cridland claimed it is up the government to ensure the economy is kept as competitive as possible, particularly in relation to overseas rivals.

According to the government, London has a larger economy than Portugal, Finland and the Republic of Ireland combined.

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