London - Overview:
Home to the European headquarters of 33 per cent of the world's largest companies, with an economy that is larger than that of several European nations, London is widely regarded as the primary location in Europe for business. Centuries of political and social stability and international trade have given rise to a thriving hub for international commerce. Over 65 per cent of Fortune's Global 500 companies have chosen London as a centre of operations and London plays host to more foreign banks than any other city in the world.

Economy:
The London economy contributes around 17 per cent of the UK's total GDP and is comparable in size to that of Sweden, Belgium and Russia. Each of London's distinct regions - North, South, East, West and Central - is individually larger than many major cities elsewhere in Europe. The sheer size and diversity of London presents a wide variety of potential locations, so much so that most investors will find a region to meet their needs.

The financial and business services are at the centre of London's economy and together employ in the region of one-third the total Greater London workforce. With more overseas company listings than any other exchange, the London Stock Exchange is the largest in the world, accounting for more than 32 per cent of global turnover - more than the combined contribution of New York and Tokyo. The sector is concentrated in the City of London, which with around 500 foreign banks and numerous insurance and other business service companies, is rightly recognised as a dominant force on the international financial stage.

London is also a major centre for European e-commerce and related sectors. Attracted by solid reliable infrastructure and an impressive track record in research, development, innovation and manufacturing, many of the worlds leading companies in the field have invested in London. It has the UK's largest concentration of Internet-related firms including Globix, Yahoo and Virgin.

London is also home to several other thriving industries including arts and fashion, film, media, design, law and computing. Around 85 per cent of UK fashion designers and 70 per cent of the UK film and television companies are based in London. Tourism is another important industry for London with typical yearly expenditure by tourists being in the region of £7-10bn. It has suffered recently as a consequence of the foot and mouth crisis and the terrorist attacks in Washington and New York. However, following a variety of measures including the establishment of the London Tourism Recovery Group (LTRG), recovery is underway.

Whilst recent decades have seen a decrease in manufacturing and production, this industry still employs a significant percentage of London's workforce, accounting for around 11 per cent of London's GDP and 8 per cent of the UK's manufacturing output.

In addition to a comprehensive - if at times over-stressed - public transport system, reliable amenities, accessible, supportive local government offering a variety of business assistance, companies locating in London also benefit from close contact to a diverse range of commercial expertise. London is a noted international centre for research and development, law, accounting and international finance and management consulting.

Local Infrastructure:
London's domestic and international connections are second to none. London Heathrow, the world's busiest airport, is just 15 minutes from the centre of the city via a new express rail link.

The future management and development of the transport system and how best to ensure its ability to cope with increased demand, is an ongoing issue. Recent measures to levy charges on vehicles entering the city have had a very mixed reception.

Local Workforce:
The total workforce in London and its surrounding regions constitutes the largest concentration of labour in Europe at around 9,000,000 and at the end of the Nineties London salaries were above the national average at around £29,000.

As in most major cities, the service sector is feeling the pinch of a skills shortage whilst wage inflation and general unemployment rates are relatively high.

Business Costs:
Adequate office space is in relatively short supply and consequently prices are high. Office occupation costs in Central London topped the list of the Global Market Rents Report, July 2002, published by CB Richard Ellis. In response to this, many larger companies will tend to establish a small HQ in central London and maintain larger customer service, manufacturing or research facilities in the less expensive Greater London region.

Extensive telecommunications infrastructure development during the Eighties and Nineties ensures that today London based companies have a wide choice of suppliers. Competition in the sector is therefore healthy and has given rise to some of the lowest costs in the EU. General utility costs in the UK are also very favourable.