Wednesday 3 January 2018
Government urged to deliver good news in the New Year as business hit with spiralling costs
London businesses have been hit by a series of rising business costs over the past 12 months according to a new survey by London Chamber of Commerce and Industry (LCCI).
More than 500 businesses were polled by ComRes of behalf of LCCI and reported a range of rising costs from business rates to the cost of renting business space.
The factors which were most likely to lead to a rise in business costs over the last year were rising inflation (reported by 55%) and the weakening of the pound against other currencies (43%).
Around a quarter of businesses reported an increase in costs due a change in pension auto enrolment regulations (25%),changes in the cost of renting business space in London (24%) oran increase in business rates as a result of the April 2017 revaluation (22%).
Chief Executive of LCCI, Colin Stanbridge said: “It’s been a tough year for businesses in a whole host of ways.
“They have had to contend with an increase in business rates, multiple new employment costs as well as rising inflation, a weakening of the pound and rent rises.
“Going into 2018 therefore it vital the Government does what it can to help businesses thrive, to fully commit to infrastructure investment such as Crossrail 2 and fixed river crossing in east London and to really engage with business to understand what their needs and priorities are in the coming year.”
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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. Other costs identified in the survey were a 17% reporting a rise in costs, due to rises in the National Living Wage (31% larger, 15% micro), 8% due to the Immigration Skills Charge (26% larger, 6% micro) and 7% due to the Apprenticeship Levy (23% larger, 5% micro).
4. 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