Three quarters of businesses plan expansion in 2014

Confidence among London firms is on the rise according to the latest report from the CBI and KPMG.

The London Business Survey questioned 134 respondents about their plans for the upcoming year, finding that 73 per cent are planning to grow their operations.

Meanwhile, 69 per cent of firms feel more positive about next year’s economy – the highest level of confidence for three years – and half of those surveyed said they were optimistic about their own businesses performance.

The majority of London-based respondents – 88 per cent – trade in Europe, whilst 69 per cent do business in China and 64 per cent in India, enhancing London’s reputation as a global business centre.

London director at the CBI, Sara Parker, spoke to about the importance of global expansion, saying: “Improving confidence about the economy is feeding through into upbeat expansion plans. To successfully rebalance the economy we need UK firms to expand overseas.”

The CBI’s results come at a time when the UK economy as a whole is seeing a resurgence. According to the Bank of England has predicted 2.8 per cent growth, while employment levels are on the rise.

Looking ahead in a CBI press release, Richard Reid, London Chairman for KPMG, commented: “London houses the UK centre of global commerce, with many businesses already operating in or exporting to overseas territories… Europe remains vital for being the hub of a single European market and expanding our growth in the major emerging markets which is so important to our future.”