Businesses to flee London over insurance costs
The huge increases in insurance premiums and hikes in business rates are likely to drive businesses away from London, according to a new survey released today.
Link: Quarter of IFAs have no insurance
The survey, conducted on 500 senior financial managers that qualified with the Chartered Institute of Management Accountants, found almost one in four thought increased insurance premiums and the hike in business rates would drive their company to relocate. And almost 40% said their companies were ‘very likely’ to move in the next 15 years.
CIMA-qualified managers were most unhappy with the cost of living and the public transport in the capital. Almost 60% of businesses admitted to being adversely affected by poor transport in London, saying it was ‘one of the worst things about doing business in London’.
And the threat of terrorism continues to be a major factor, with 40% of respondents citing it as the key risk to doing business in the capital.
Charles Tilley, chief executive of CIMA said: ‘These findings are of real concern. Finance directors are rightly focused on the bottom line and, if London gets too expensive, they will be spearheading the move out of the city.
‘The government needs to act, otherwise I’m sure other cities and countries will be only too happy to accommodate companies leaving the capital.’