David Jetuah, Accountancy Age, Thursday 1 July 2010 at 09:52:00

London in danger of losing its tag of the world's leading financial centrebecause of the new 50% tax regime


Companies are concerned London could lose its top financial city statusbecause of the 50p rate of income tax.

57% of those polled in the KPMG/CBI study feared the higher rate could stopbusinesses from choosing London as a base or staying in the UK in the long-term.

Nigel Bourne, director of CBI London, said: "Even though most companies ratethe capital as a good or very good place to do business, the cost of operating abusiness in London, the level of taxation and the transport system are all seenas denting its ability to compete on the world stage."

However, the survey found 53% were still optimistic about their futurebusiness prospects, up from 47% six months ago.

58% of companies plan to expand their business in the next 12 months, with32% of those planning to expand within London.