Capital feels good for accountants

LONDON's accountants are much more confident about business prospects than their peers in the rest of the country, as the capital leads Britain's economic upswing.

The upbeat mood is expected to translate into employment and wage increases, according to a report from the Institute of Chartered Accountants and Alliance & Leicester. But turnover and profits growth are seen levelling off.

A poll of more than 1,000 accountants found that 63% predict business will improve over the next year against 8% who expect it to deteriorate. The net balance of 55% compares with 46% in the February survey. The survey's-business confidence index jumped from 29.9 in February to 34.6 in the latest survey. That compares with 23.5 for Britain as a whole.

Firms are expected to recruit more staff, and salaries are seen growing by 4% in the coming year.

London Society of Chartered Accountants president David Adams said: 'The only concern seems to be in the retail and wholesale sectors, and it will be interesting to see whether consumers react to recent interest rate rises and if seasonal factors have a major effect on sales in the coming months.'