London's Financial Hub Reputation Hit By Credit Crunch

Tue, 27 Jan 2009

The credit crunch has damaged London's status as one of the globe’s leading financial centres, according to new research.

A survey carried out by top 10 accountancy firm Smith and Williamson's found that that 62 per cent of firms in the City believe that London's reputation has diminished as a result of the economic downturn .

Fifty six per cent of firms polled reported a drop in profits, while more than half said they plan to cut discretionary spending this year.

In order to reduce costs, a quarter said they expect to make staff redundancies, while just over half said they are putting a complete halt to new recruitment .

The annual survey questioned 60 financial advisers, fund managers and banks with yearly turnover ranging from under £10 million to more than £250 million.

The findings come after the January 2009 London Business Leaders Panel Survey, released by the London Chamber of Commerce and Industry, found that only half of City companies believe they are "very likely" to survive the economic downturn.
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