Confidence pulls the UK economy ahead of its European rivals
After a difficult few years during the recession, London’s economy is certainly bouncing back with a renewed sense of optimism, driving the UK economy and leaving its European rivals behind.
In a recent poll by the London Chambers of Commerce and Industry (LCCI), almost 2/3 of businesses expect their turnover to rise this year – the most optimistic perspective since quarterly surveys began in 1989.
With the rapid recovery, and surging levels of employment, finding the right people to hire is an area of concern, as more than half of these firms say they are struggling to find employees with the right skillsets, increasing to almost 2/3 for professional roles. The LCCI were quoted as saying that this skills gap is ‘holding London back’ and needs addressing swiftly. However in the Technology sector, given the focus on this sector, we have witnessed a huge rise in people working in this area, including relocating from Europe to take advantages of London’s strengths, expertise and technology hubs.
In a recent Deloitte survey, across the board there is a heightened sense of stability, with CFOs enjoying an increased sense of confidence; risk appetite is at its highest level for years, with almost all CFOs saying the economic outlook of the UK has improved in the last six months. As a result, expectations are for capital spend to increase past 2010 levels and business investment is certainly on the up. We are seeing many of our clients ask us to help them expand internationally, particularly the United States. Technology companies usually head for San Francisco or sometimes New York, creative companies either Los Angeles or New York.
The recent opening of the Olympic Park grounds also means there’s even more to do outside of work – whether it be to visit the Aquatics Centre, the Velo Park or climb the Arcelor Mittal tower. It’s the largest park to open in the capital for a century, most definitely worth the wait! And with an ever changing London skyline, you can be sure to have another new building to visit the top of for a new view of London.
With the economic outlook getting ever better, the Government firmly supporting UK tech businesses with a favourable tax regime, and its world leading creative talent, now is the perfect time to invest and locate in London.