Transport And High Costs Are The Key Problems To Doing Business In London

Travel, Tourism & Transport

Poor transport and high costs are the key concerns about doing business in London according to new research carried out by MORI for the Chartered Institute of Management Accountants (CIMA).

 

Poor transport and high costs are the key concerns about doing business in London according to new research carried out by MORI for the Chartered Institute of Management Accountants (CIMA).

The survey of 500 London CIMA members, many of whom are senior financial managers and directors, shows that around half believe transport/travel and costs (58% and 48% respectively) are 'the worst things about doing business in London'. Particular concerns are focused on the Underground (29%), traffic congestion (27%), buses/trains (23%), the cost of living (26%) and the cost of property (23%). Half of members (48%) think that improving transport is the factor that would have the biggest positive impact on their business.

Moreover, the current threat of terrorism in London is considered the key risk to do doing business in the capital, double the proportion of the second most mentioned risk (40%).

On a more positive note, however, the overwhelming majority of London CIMA members (89%) say they are satisfied with London as a place for business from the point of view of the company they work for. A plentiful labour supply and location are cited as the two main strengths to doing business in London. Between one in four and one in three members mention access to good quality employees, being close to 'the City' and other financial institutions and convenient access to facilities as the best things about running a business in the capital.

Technical details

  • MORI interviewed 500 London members of the Chartered Institute of Management Accountants (CIMA) by telephone between 15-30 May 2003.
  • CIMA provided MORI with their London membership database. From the membership details provided, MORI then interviewed as many finance directors as possible, with a random sample of the remainder, subject to restricting coverage to one person per organisation.

Topline Results

  • MORI interviewed 500 London members of the Chartered Institute of Management Accountants (CIMA) by telephone between 15-30 May 2003.
  • CIMA provided MORI with their London membership database. From the membership details provided, MORI then interviewed as many finance directors as possible, with a random sample of the remainder, subject to restricting coverage to one person per organisation.
  • Results are based on all respondents (500) unless otherwise stated.
  • Data are not weighted.
  • An '*' indicates a finding of less than 0.5%, but greater than zero.
  • Survey conducted by MORI on behalf of the Chartered Institute of Management Accountants.

Business In London

Q1 How satisfied or dissatisfied are you with London as a place for your business?

160 %
Very satisfied 41
Fairly satisfied 48
Neither satisfied nor dissatisfied 5
Fairly dissatisfied 4
Very dissatisfied *
Don't know 1

Q2 What, in your opinion, are your company's business reasons for having their head office in London?

160 %
TRANSPORT / TRAVEL: 3
Buses/trains 2
London Underground/the Tube 2
Roads 1
Congestion Charging 0
Parking 0
Traffic congestion 0
LOCATION: 58
Close to 'the City' and financial institutions 29
Convenient location for all facilities 20
Good connections internationally 10
Good connections nationally 8
Close to airport 4
Close to Government 3
COST: *
The cost of living *
The cost of property *
Taxes/Council Tax 0
Childcare costs 0
The cost of housing 0
BUSINESS: 21
Access to good quality employees 10
Our client base is in London 9
Key directors live in London 3
Business rates/Insurance premiums *
Job opportunities/better salaries/higher wages *
Regulation *
OTHER: 34
Historical reason/have always been in London 18
Prestige 8
Good services/facilities/amenities 1
Good cultural facilities and restaurants 1
Large population 1
English language 1
The mixture of people who live here *
Threat of terrorism *
The range of housing available 0
Safety in London/Crime rates 0
Other 7
160
Don't know 1
Head office is not located in London 7
None of these/nothing 1

Q3 What, if anything, would you say are the two or three best things about running a business in London?

160 %
TRANSPORT / TRAVEL: 17
Buses/trains 10
London Underground/the Tube 9
Roads 4
Better communication 2
Congestion Charging 0
Parking 0
Traffic congestion 0
LOCATION: 63
Close to 'the City' and financial institutions 30
Convenient location for all facilities 25
Good connections internationally 14
Good connections nationally 10
Close to airport 6
Close to Government 3
COST: *
The cost of property *
The cost of living 0
Taxes/Council Tax 0
Childcare costs 0
The cost of housing 0
BUSINESS: 41
Access to good quality employees 35
Our client base is in London 7
Job opportunities/better salaries/higher wages 1
Regulation 1
Business rates/Insurance premiums *
Key directors live in London *
OTHER: 31
Prestige 10
Good services/facilities/amenities 5
Overpopulated/overcrowded 3
English language 3
The mixture of people who live here 3
Good cultural facilities and restaurants 2
Time zone 1
Historical reason/have always been in London 1
Safety in London/Crime rates *
The range of housing available *
Other 7
160
Don't know 3
None of these/nothing 2

Q4 What key risks, if any, are there to doing business in London?

160 %
TRANSPORT / TRAVEL: 21
London Underground/the Tube 12
Buses/trains 11
Traffic congestion 7
Roads 3
Congestion Charging 2
Transport generally 1
Lack of parking *
Parking facilities *
COST: 32
The cost of living 17
The cost of property 16
Taxes/Council Tax 5
The cost of housing 5
Childcare costs 0
BUSINESS: 43
Business rates/Insurance premiums 16
Job opportunities/salaries/wages 10
Competition/retaining staff 5
Single currency/Not joining EU 4
Crumbling infrastructure 4
Lack of good employees 3
Strikes 2
Market conditions/economy 2
Increased regulation 1
Financial risk 1
Customers/Financial centre moving 1
Protests and demonstrations *
OTHER: 44
Threat of terrorism 40
Safety in London/Crime rates 2
Fall in tourism 1
Overpopulated/overcrowded 1
Services/facilities/amenities *
Cultural facilities and restaurants *
Aircraft noise *
The mixture of people who live here 0
The range of housing available 0
Other 3
160
Don't know 5
None of these/nothing 8

Q5 What, if anything, would you say are the two or three worst things about running a business in London?

160 %
TRANSPORT / TRAVEL: 58
London Underground/the Tube 29
Traffic congestion 27
Buses/trains 23
Roads 7
Infrastructure/transport system generally 3
Congestion Charging 3
Parking facilities 2
Lack of parking 1
The cost of transport 1
Commuting/travel distance 1
Aircraft noise 0
COST: 48
The cost of living 26
The cost of property 23
Taxes/Council Tax 6
The cost of housing 6
Childcare costs *
BUSINESS: 34
Business rates/Insurance premiums 16
Job opportunities/salaries/wages 11
Lack of good quality employees 4
Crumbling infrastructure 2
Joining euro/EU 2
Strikes 1
Increased regulation 1
The competition 1
Redundancy/staff turnover 1
Cost of running business *
OTHER: 17
Pollution 3
Overpopulated/overcrowded 3
Safety in London/Crime rates 2
Threat of terrorism 2
Services/facilities/amenities *
The range of housing available *
Stress *
The mixture of people who live here 0
Cultural facilities and restaurants 0
Other 7
160
Don't know 5
None of these/nothing 2

Q6 Over the past two years or so, do you think London has got better or worse as a place to run a business or has it stayed about the same?

160 %
Got better 12
Got worse 25
Stayed about the same 61
Don't know 2

Q7 Why do you say that?

Base: All those who think London has got worse a place to run a business (124)

160 %
Poor transport infrastructure 45
Cost of living in London/Overall expense 27
The threat of terrorism 12
Increased traffic congestion 10
Downturn in the economy 10
Congestion charges 9
Journey/commuting times 2
Increase in crime 2
Increased regulations/legislation 3
Increased rates 4
Other 19

Q8 Which two or three changes, if any, do you think would have the biggest positive impact on your business?

160 %
TRANSPORT / TRAVEL: 48
More tubes, trains 29
More buses 16
Reduce traffic congestion 13
More investment/Integration of transport infrastructure 6
More roads/road maintenance 4
Cheaper fares for public transport 3
Improve public transport system in general 3
Extend congestion charging 2
Abolish congestion charging 1
Improve parking *
More pedestrian areas/more cycle routes *
COSTS / PROPERTY: 34
Reduce business rates/Insurance premiums 10
Lower cost of living/housing 9
Lower cost of property 6
Reduce taxes/Council tax 6
Reducing red tape and bureaucracy 6
Affordable housing/property prices/ lower cost of property 4
Costs generally 1
BUSINESS: 16
Joining the euro 6
Stabilise/improve economy in general 3
Government help/Investment/Funding 3
Greater access to workforce/increased employment/recruitment 2
Consumer confidence/Public spending/Tourism 2
More clarity with euro/EU 1
Staying out of the euro *
ENVIRONMENT: 3
Cleanliness on the streets/remove litter/rubbish 2
Pollution/air pollution 1
OTHER: 15
Reduce threat of terrorism 3
Improvements in IT opportunities/communications 3
Deal with safety/crime 2
Move out of London/Relocate 1
Abolish/strengthen the powers of the Mayor *
Other 6
160
Don't know 12
None of these/nothing 4

The Euro

Q9 Which one of the following statements, if any, would best reflect the point of view of your business about the euro?

160 %
The UK should adopt the euro as soon as practicable (i.e. within 24 to 30 months of a positive referendum result) 32
The UK should wait and see how the euro develops before making a decision 46
The UK should never adopt the euro 8
Other 3
Don't know 10

Q10 If the UK does not join the European Single Currency, how likely or unlikely is it that London will retain its position as a major European financial centre? Is that very/fairly likely or not very/not at all likely?

160 %
Very likely 33
Fairly likely 38
Not very likely 20
Not at all likely 5
Don't know 5

Congestion Charging

Q11 How strongly do you agree or disagree that congestion charging is bad for business in London? Is that strongly/tend to agree/disagree?

160 %
Strongly agree 16
Tend to agree 16
Neither agree nor disagree 19
Tend to disagree 27
Strongly disagree 17
Don't know 5

Governance in London

Q12 How satisfied or dissatisfied are you with the way Ken Livingstone is doing his job as Mayor of London? Is that very/fairly satisfied/dissatisfied?

160 %
Very satisfied 6
Fairly satisfied 30
Neither satisfied nor dissatisfied 28
Fairly dissatisfied 20
Very dissatisfied 13
Don't know 3

Q13 You said that you are satisfied with the way Ken Livingstone is doing his job as Mayor of London. Why do you say that?

Base: All who are satisfied with the way Ken Livingstone is doing his job as Mayor of London (178)

160 %
Congestion Charging/trying to reduce congestion 39
Trying to do his best despite limitations/constraints 24
Doing a good job for London 23
Addressing transport issues/trying to improve transport 19
Improving London/creating better future 14
Approve of his policies 8
Like him/his personality/attitude 7
He is honest/strong/brave 6
Cares for the people/one of us/trying to help public 3
Improvements to the bus service 3
Dealing with crime 2
Other 4
Don't know 4

Q14 You said that you are dissatisfied with the way Ken Livingstone is doing his job as Mayor of London. Why do you say that?

Base: All who are dissatisfied with the way Ken Livingstone is doing his job as Mayor of London (165)

160 %
Congestion Charging/trying to reduce congestion 24
No improvements to transport 22
Not fulfilling promises/no improvements 17
Not working for London/listening to people's needs 17
Dislike him/his attitude/his style 16
A lot of talk but not much action 16
Creating more problems/doesn't know what he is doing/policies not thought through 13
Council tax increase 12
Money wasted/too much expenditure 10
Mayor is too political/dislike politicians 7
No improvement to the tube/ underground 5
Roads congested/no improvements to roads 3
Abolish the Mayor/the Mayor is restricted/has no proper mandate 2
Has done nothing for business 2
His opposition to privatisation of transport (PPP) 2
Other 1

The Future

Q15 How likely is it that the office you work in will still be in London in ... Is that very/fairly likely or not very/not at all likely?

160 Very likely Fairly likely Not very likely Not at all likely Don't know
160 % % % % %
5 years 71 17 6 4 1
10 years 51 24 8 8 9
15 years 38 24 7 12 19

Q16 What one reason, if any, would make your company consider relocating?

160 %
Increased insurance premiums/Hike in business rates 24
General running costs/Costs 8
Merger/Changes in industry/business 7
Increased/decreased business demand 5
If customers/suppliers/client/ market moved 5
Terrorist attacks 3
Departure of Chief Executive 3
Infrastructure crumbling 3
Property/Rent increase/decrease 3
If financial centre moves 2
If technology improves/changes/ advances 2
Skilled workforce 2
Pressure from employees 1
Increased regulation 1
Not joining the euro 1
Extension of congestion zone *
Closure of tube lines *
Pressure from shareholders *
Joining the euro *
Highly unlikely/Won't move/Not a factor 1
Other 3
Don't know 4
None 23

Q17 If you chose to move outside London, where would you relocate to?

160 %
Other UK city 27
Home Counties 21
Other European country 6
Other country 3
United States 2
Along M4 corridor 1
Financial/business centre/Near airport 1
Suburbs/Outskirts of airport 1
Client/customer base 1
Would not move 22
Other 1
Don't know 14

Q18 Does your company have more, fewer or about the same number of employees in London as a whole compared with ...

160 More Fewer About the same Don't know / can't remember / not applicable
160 % % % %
One year ago 31 27 42 *
Five years ago 49 26 14 11

Q19 Do you expect to have more, fewer or about the same number of employees in London as a whole in ...

160 More Fewer About the same Don't know / can't remember / not applicable
160 % % % %
5 years time 45 19 32 4
10 years time 42 19 20 19
15 years time 34 18 20 28

Classifications

Finally, I would just like to ask you a couple of questions to help us analyse the findings.

QA What is your business sector?

160 %
Agriculture/fishing 0
Manufacturing/production 9
Construction 2
Transport 2
Hospitality (hotels, catering, leisure) 5
Retailing/wholesaling 7
Other private/business services 40
Public/voluntary sector services 16
Banking/Financial Services 6
Media/Publishing 5
I. T. 2
Utilities *
Telecommunications 1
Property/Housing 2
Healthcare 1
Education *
Petrol/Oil *
Import/Export/Distribution *
Other 6
Non response 1

QB How many people (part-time plus full-time) do you employ at your site?

160 %
0 (self-employed/sole trader) 1
1-9 10
10-19 7
20-34 9
35-49 6
50-99 13
100-199 15
200-499 19
500+ 21
Non response 1

QC What is your position within the business?

160 %
Managing Director 4
Manager 7
Owner 2
Partner 1
Personnel Officer/Director 0
Finance Director 8
Director 4
Company Secretary 1
Chairman *
Chief Executive Officer 1
Accountant 22
Finance/Financial Manager 15
Finance/Financial Controller 20
Analyst 4
Consultant 1
Tax manager/Advisor 1
Risk/Fund manager 1
Other 9

QD What, approximately, is your company's turnover?

160 %
Less than 16350,000 per annum 1
Over 16350,000 to 163250,000 per annum 3
Over 163250,000 to 163500,000 per annum 2
Over 163500,000 to 1631 million per annum 4
Over 1631 million to 1635 million per annum 10
Over 1635 million to 16310 million per annum 7
Over 16310 million to 16325 million per annum 10
Over 16325 million to 16350 million per annum 8
Over 16350 million to 163100 million per annum 8
Over 163100 million to 163500 million per annum 19
Over 163500 million to 1631 billion per annum 6
Over 1631 billion per annum 11
Don't know 5
Refused 5

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