Skills shortage blights scope for London business growth

THE chronic skills shortage is now seen by London small businesses as the second biggest obstacle to growth after the state of the economy according to a new survey published today.

More than four out of 10 of those polled by the Federation of Small Businesses said the skills drought was a major barrier in the fourth quarter of the year, up from 27% in the summer.

The only issue that had a bigger response was the “general economic conditions” with 56%.

The FSB’s latest London Small Business Index (LSBI) is released today showed business confidence improving slightly from rock bottom with a rating of -29 up from -33.

More firms reported an increase rather than fall in profit and London investment intentions were well above the national average.

The FSB has called for a range of measures to beat the skills shortage such as an Apprenticeship Grant for microbusinesses, the removal of the 25% cap of unused Apprenticeship Levy funds; and a new

50+ Skills Bootcamps to help older people back into the labour market.

London businesses have found it particularly hard to recruit since Covid.