Businesses consider moving out of London due to Brexit and rising cost pressures

Monday 12 February 2018

One in five London businesses have moved or considered moving elsewhere in London or out of the capital over the past year due Brexit, rent rises or business rate rises.

A survey of more than 500 business by the London Chamber of Commerce and Industry found that some businesses were having to look at a move to a different part of London, others out of the capital and others out of the UK entirely.

Of those surveyed, 22 per cent were doing so because of the decision to leave the EU, 21 per cent because of rent rises and 19 per cent because of rising business rates.

When it came to making the move because of the decision for the UK to leave the EU, the survey, carried out by ComRes found 11 per cent of London businesses have considered leaving the UK, and an additional 2% have already done so.

Chief Executive of London Chamber of Commerce and Industry Colin Stanbridge said: “What we have is a still unfolding picture of how business are reacting to a number of cost pressures and uncertainties.

“While this survey found just two per cent of businesses had moved business activities out of the UK, perhaps the more worrying factor is that more than one in ten have considered it.

“Unless businesses see serious progress in trade talks, which have already been delayed, it is not unlikely that we could see this figure translate into even bigger losses for London and indeed the UK.”

ENDS

Media contact

Katharine Barney
T: +44 (0)20 7203 1897                         
M: +44 (0)7827 241528
E: kbarney@londonchamber.co.uk

NOTES TO EDITOR:

  1. London Chamber of Commerce and Industry (LCCI) is the capital’s largest and most representative business organisation, with members ranging in size from multi-national companies to SMEs and sole traders.
  2. Colin Stanbridge, Chief Executive, is available for further comment and interview.
  3. In terms of rising business rates, businesses have been considering moving activities within London (6% considered this in addition to 4% that actually did it), out of London (5% considered it, 2% did it) or out of the UK (5% considered, 2% left)
  4. And as a result of rent increases, businesses have been (considering) moving activities within London (8% considered this in addition to 3% that actually did it), out of London (7% considered it, 1% did it) or out of the UK (5% considered, 2% left).
  5. ComRes online survey for LCCI of 577 London businesses, weighted to be representative of all London businesses by company size and broad industry sector, between 2 and 27 November 2017. Full data tables are available at www.comresglobal.com