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Commercial Finance: News
London businesses upbeat
Property
Businesses in the capital are the sector investment and an overly all companies. It is also important investment
most optimistic they have been in burdensome tax and regulatory that policy makers and the
18 months about prospects for the regime are seen by firms as Government pay close attention to
coming half-year. threatening London's attractiveness maintaining our position as a global
confidence
However, they remain cautious as a place to invest and do business. financial centre as the world slowly
about future investment and While a quarter of respondents starts to emerge from recession. The increases
divided about London's longer-term say they see London's status Capital is facing challenges on many
status as a world city, a CBI / KPMG improving in five years, another fronts; not just from the tough
For the third month in a row,
survey has revealed. quarter think its standing will economic conditions but from new
figures from the Worldwide
The poll of senior executives shrink compared with cities such as emerging financial centres, and
Property Group reveal an
shows that most firms still think the New York, Paris, Tokyo or Mumbai, there is real concern of a regulatory
increase in confidence amongst
property investors.
capital is a good place to do and half say it will simply remain backlash that could make the City
The property investment
business, and more think so now where it is. less attractive to overseas investors
company's monthly survey
(86 per cent) than when the last Firms remain cautious about and businesses. reports that 88 per cent of those
survey was conducted in April (80 their investment plans. A third (30 "Whilst an appropriate regulatory people who responded during
per cent). Business performance has per cent) plan to cut back on framework is critical for business
November say that now is a
also improved, with fewer reporting recruitment and training and a success in a competitive world
good time to invest in UK
falling business values (36 per cent) further third (31 per cent) on IT economy, policy makers need to
property compared to 87 per
than six months ago (59 per cent). infrastructure, equipment, plant and ensure that they don't hamper
cent in October and 85 per cent
Forty seven per cent of firms are machinery. London's ability to compete with
in September. This is yet
another sign that improvements
optimistic about their future Commenting, Richard Reid, other global centres by rushing in a
in the UK property market are
business prospects, which is the London Chairman of KPMG, said: raft of new rules which ties
continuing despite ongoing
highest proportion since April 2008 "Whilst it is encouraging to see businesses in knots. London also economic difficulties.
(30 per cent). London's businesses feeling more needs to take a lead in Europe in Further positive results were
However, a perceived lack of confident, it is important that the helping the EU to emerge from
revealed with a higher
government action on issues such as lessons learned over the last two recession in a much stronger
percentage of respondents
transport and skills, falling public years are kept at a high priority for position."
expecting UK house prices to
rise by a greater amount. 23 per
cent of those people who expect
FSB welcomes PBR support
prices to rise over the next 12
months believe that this will be
by more than 5 per cent versus
The Federation of Small Businesses Commenting, John Wright, FSB Business' Annual Survey, 26 per cent just 14 per cent of respondents
(FSB) welcomed measures by the National Chairman said: "Extending said a cut on this business tax would from last month's survey.
Chancellor to give small businesses the Enterprise Finance Guarantee improve their economic prospects.
Two thirds say that they are
a helping hand by extending finance scheme, which we called for last year It will also save small firms more
benefiting from the current low
to small firms and calling off a 1p and has seen more than £600 than £300 million over the next year
level of interest rates and of
rise in small companies' million lent out to just over 6,000 and give them more of a chance to
these 60 per cent say that this
Corporation Tax in his Pre-Budget businesses, is a welcome move, take on new staff.
has increased their desire to
purchase property.
Report. although we wanted to see the "Lowering tax to 10 per cent on all
Although the number of
Extending the £1.3 billion scheme extended indefinitely and profits derived from patents is good
people who are considering
Enterprise Finance Guarantee fund promoted further to help small news for innovative businesses and buying a property in a foreign
for businesses looking for new firms get much-needed access to will encourage entrepreneurialism. location fell slightly, nearly 50
finance - a victory for the FSB last finance. "Raising National Insurance by a
per cent of those who
year - is a welcome step the FSB has "The Government has missed a half of one per cent in 2011 is an
completed the survey say that
called for and shows that the chance to really tackle a difficult attack on jobs and shows a real lack
they would consider buying
Government has been listening to credit market by failing to create of vision from the Government on
overseas, with the most popular
small firms' finance needs. more options for access to finance, tackling the key challenge of rising
location identified as the
Caribbean.
However, at this difficult time, the and more competition among high unemployment. In a survey of FSB
Commenting on the figures,
Government should be making it as street banks. The Government members this year, 44 per cent said
Kevin Wilkes, managing director
easy as possible for small firms to should have addressed this challenge a cut in payroll taxes would help of the Worldwide Property
recruit new staff and the FSB is and looked at options such as a them take on more staff, so this is Group said: "The results of this
disappointed that this budget was regional stock exchange to help extremely damaging for
survey once again show the
not focused on providing incentives small and fast growing businesses employment in the UK. While
resilience of the property
or assistance to the smallest firms capture finance. unemployment continues to rise, it
market. With dreadful savings
that want to take on more staff and "Holding off the planned 1p rise in is unaccountable that the
rates and continuing stock
so tackle the rising problem of small companies' Corporation Tax Government hasn't considered a
market volatility, investors are
still turning to bricks and
unemployment. Going ahead with is a victory for the FSB and will give new approach, such as a National
mortar as a safe place in which
the proposed 0.5 per cent increase small companies a real helping Insurance rebate for new jobs in
to invest their hard earned
in employers' National Insurance hand, giving them the chance to small firms. This pre-budget report money. I see no reason why this
Contributions will not encourage expand and invest, and to grow out should have encouraged and will not continue throughout
job creation within the small firm of the recession with confidence. In rewarded job creation in 2010,
2010 and beyond."
sector. the FSB-ICM ‘Voice of Small rather than imposed this tax."
January 2010 Mortgage Introducer www.mortgageintroducer.com
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