Home Business NewsBusiness London businesses need solid reassurance from the government following the Brexit vote

London businesses need solid reassurance from the government following the Brexit vote

by LLB Reporter
6th Oct 16 10:47 am

New survey finds

Businesses need solid reassurance from the government following the Brexit vote, a new economic survey by London Chamber of Commerce and Industry (LCCI) and ComRes has shown.

The Capital 500 – London’s largest regular business survey -– found that in line with decreases seen in all indicators of companies’ performance over the last two quarters, expectations for the next 12 months continued to deteriorate to Capital 500 record lows.

On balance, nine per cent of London businesses expected their overall company prospects to decline, moving into negative territory for the first time and down a record 22 points on last quarter.

Chief Executive of London Chamber of Commerce and Industry Colin Stanbridge said:

“London businesses are taking a pragmatic and level-headed approach to the Referendum outcome. The result may have been unsettling for some, but we are not seeing any sense of panic.

“There is clearly no room for complacency as we take the first steps towards a post-Brexit future.  It is of vital importance that Government takes steps to reduce uncertainty, and boost business confidence in the short term.  For London, that means investing in strategic infrastructure and addressing issues such as recruiting and retaining skilled staff in a post Brexit-era.”

The LCCI made four key recommendations following the latest survey to rebuild London business confidence:

Recommendation 1: A cross-Whitehall national strategy for exports growth could co-ordinate relevant departmental policies and outline the role that businesses and private providers could play in an integrated effort to target support to greater numbers of UK firms, particularly SMEs, looking at overseas markets.

Recommendation 2: The Government should ensure Apprenticeship Levy funding can be used to support other high quality workplace and vocational training and large employers should be able to transfer their electronic vouchers to smaller firms in their supply chain.

Recommendation 3: The Mayor of London should work with business groups to assess the potential impacts of significant new ratings on London businesses across differing boroughs and across various sectors.

Recommendation 4: The forthcoming Autumn Statement provides an opportunity for Government to boost business confidence by moving strategic London transport infrastructure like Crossrail Two or a new runway to “next stage” while targeting public sector investment to attract private finances to support future infrastructure projects.

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