The biggest threats to London’s competitiveness as a global city is the rapidly rising cost of housing and expensive public transport, according to a London Chamber of Commerce (LCC) poll.
The poll of 1,700 people conduced by Com Res found that the exorbitant price of housing in the capital was cited as the biggest challenges for someone wanting to start a new business in London by 68% of councillors and 56% of business leaders.
Colin Stanbridge, Chief Executive of London Chamber of Commerce and Industry said:
“London is a phenomenal success story, but are we soon to become a victim of our own success? This new research shows that our city is fast becoming an unaffordable place to set up shop and live.
“We also need to carefully consider how necessary transport and infrastructure upgrades can be financed, when 39% of Londoners already think transport costs are a major barrier to London’s competitiveness, making fare increases unpalatable.”
“Attracting people to London does not appear to be a problem”, says Ernst & Young’s Senior London Partner Caroline Artis, but the cost of house sales in the capital are pushing workers further afield. These distances are putting a major strain on transport infrastructure, with transport costs seen as another major point of pain for 36% councillors, 42% business leaders, and 45% Londoners.
Patrick Burrows, Chief Financial Officer, London City Airport, said:
“Clearly projects as diverse as Crossrail – both one and two – and the cycle superhighways are on track to provide both new transport links and alternative transport modes, which is good news for London. Issues remain, however, with road, rail and air – issues of cost, capacity and of infrastructure at bursting point.”
