Wednesday 22 June 2011 8:06 pm

Upbeat firms boost London jobs market

JOB opportunities are opening up in London as the capital’s firms shrug off any effects from planned government spending cuts. Over half of London’s businesses (57 per cent) are now hiring as normal, according to a survey from the Confederation of British Industry (CBI) – up sharply from a 45 per cent six months ago. While 52 per cent expect cuts to have “at least a moderate impact” on business, this is substantially down from 71 per cent in December. “It’s great news to see that more London firms are hiring as normal and redundancies have fallen,” commented the CBI’s London chief Sara Parker. Only 20 per cent of firms are making redundancies, down from 29 per cent in the previous survey. Yet companies in the capital remain cautious about the future. The tax regime, high inflation and economic worries make up the primary concerns for the coming year. London continues to be ranked well for its competitiveness, with 87 per cent rating it as a good or very good place to do business with other global cities. However, the tax environment, operating costs and the city’s transport are considered three key weak points. Tax, employment law and health and safety regulations are considered the most burdensome areas for businesses. “The roads network is the biggest transport concern for London firms who want one of the Mayor’s top priorities to be improving the city’s infrastructure,” Parker added.