Firms tell Ken to clear the road to growth

LONDON companies today called on Mayor Ken Livingstone to pour all his efforts into overhauling the capital's creaking transport system amid concerns it is hampering their growth prospects.

An overwhelming 92% of 1000 middle-market London businesses surveyed by accountants KPMG said modernising the transport system should be the Mayor's priority this year. More than a third said delayed and cancelled Tube, rail and bus journeys - affecting millions of employees every year - were a serious barrier to growth.

Mel Egglenton, head of London middle market at KPMG, said: "Firms are concerned about the basics of getting people into work on time so that they can do their jobs.

"There needs to be a big push by the Mayor for major projects such as Crossrail, but also for modernisation of the Underground. Despite the money committed thus far, business is not seeing results.'

Crossrail, the £11bn scheme that aims to link Heathrow in the west with Canary Wharf and Stratford in the east, via Paddington, remains stalled as it would need at least £5bn of public subsidy. Chancellor Gordon Brown is unwilling to commit more and a recent Corporation of London report concluded it may never be built.

Dan Bridgett of the London Chamber of Commerce said: "Our members tell us again and again that the inadequacy of the transport system is by far the biggest impediment to doing business in the capital.

"In how many other commercial cities is the time taken to travel from the major airport to the centre a matter of such chronic unpredictability? The Mayor should use all the powers at his disposal to lobby the Government for funds.'

KPMG says crime prevention is second on London firms' 2005 wish list. The high costs associated with employing staff, together with the skills shortage in London, was expected to be firms' biggest barrier to growth this year.