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Tech and creative industries to drive London’s growth

The capital’s growth will be driven by the technology and creative industries across the next five years according to new research released today.

The latest CBI/KPMG London Business Survey revealed over two thirds of businesses believe these sectors are key to London’s economic recovery.

They polled a range of businesses within London from SMEs to companies with turnover of up to £5oom.

Tech takes over finance

In second and third place were professional and financial services respectively.

69% of business believe technology and creative industries are key compared to 65% for professional services and 62% financial services.

Recently there have been predictions that in the next five years tech will oust financial services as the engine of London’s economic growth.

Lucy Haynes, CBI London Director, added:

If we are to attract and retain the brightest and best minds to Tech City and to the rest of London, we urgently need to tackle the endemic housing problem the capital faces.

Freeing up land and building more homes is critical to dealing with this.

Positive economic outlook

The survey also revealed that businesses are positive about the economy.

65% believe that the economy is doing well and a majority of companies are increasing their number of employees.

This bodes well for the capital, particularly after it finished top of PwC’s Cities of Opportunity index for the first time last month.