Background
For a seventh year, London Chamber of Commerce and Industry (LCCI) and London Councils annual survey of more than 1,200 London businesses provides insights into employers’ recruitment plans and their skills needs as they continue to deal with the cost of living crisis. This report also provides insights into businesses’ approach to delivering a more environmentally sustainable economy, crime in the capital, and the apprenticeships levy. Businesses provided their views on the prorities to improve London, as well as their views on giving greater powers to London Councils.
Key Findings
Devolution
The findings show that London businesses strongly support greater devolution of powers to local councils, including more control over skills, housing, and infrastructure investment.
Business support for devolution:
- 73% support local London Councils have more freedoms to fund and build more homes, a third (32%) strongly supporting.
- 70% support local London Councils have more freedoms to fund and build infrastructure, over a quarter (25%) strongly supporting
- 72% support local London Councils having greater powers to raise resources to fund additional community safety and policing, with a quarter (25%) strongly supportive.
- 72% support local London Councils having greater powers and funding to integrate employment, skill, and apprenticeships in their local area, with just under a quarter (23%) strongly supporting.
Economic impact of housing
- Two thirds of companies have recruited or tried to recruit over the past 12 months, and the same proportion of businesses expect to recruit staff next year (both 65%).
- Yet businesses cite continuing difficulties in recruiting, with a third (34%) citing problems with recruiting for professional and managerial roles.
- Approximately half (53%) believe the cost of transport in London has negatively impacted their ability to recruit or retain staff over the last 12 months, a figure that rises to approximately six in ten (63%) when they are asked about the cost of housing.
- London businesses were clear that the next UK government should prioritise house-building and tackling climate change, with a third (29%) of businesses citing these 2 among top 3 priorities.
- 39% of business leader also think that building more homes should be a priority for business rates revenue.
Apprenticeships
- One of the more encouraging figures has been a marked increase in the proportion of small and micro businesses that employ apprentices, rising from 7% in the 2021 London Business 1000 to 20% in the 2023 report.
- However for large businesses it remains stubbornly constant (42% 2021 and 45% 2023).
- There has been an increase in the level of engagement with boroughs on apprenticeships ( 2022 it was 28%, raising to 35% in 2023), although a majority of businesses (51%) still report no engagement at all from their local authority on apprenticeships.
- As seen with past Business 1000 surveys there is a strong appetite for making improvements to the Apprenticeships Levy, with making the Levy system simpler (51%) and allowing the Levy to contribute to paying for wages (50%) proving most popular.
Full London Business 1000 Report