Imagine your business in london

IMAGINE YOUR BUSINESS IN LONDON

EUROPE’S NUMBER 1 BUSINESS LOCATION

THE UK IS OPEN FOR BUSINESSThe UK offers one of Europe’s most favourable tax regimes

Milan Paris Madrid Brussels Dusseldorf Frankfurt Amsterdam London Geneva Dublin0

20

40

60

80Total tax payable as % of gross profit

Source: World Bank Doing Business 2010, fDi Intelligence, from the Financial Times Ltd

3rd lowest city for tax payable

UK’S FAVOURABLE AND STABLE TAX REGIME

The UK signals strong political will to maintain economic stability and less complexity

around taxation.

% of gross profit

Main rate from 1 April 2011 26% 2012 24% 2013 23%

2014 22%

Small companies rate from 1 April 2011 20%

London has attracted three times more European headquarters than any other European city since 2003

LONDON IS EUROPE’S ♯1 BUSINESS LOCATION

London Amsterdam Dublin Paris Geneva Madrid Brussles Dusseldorf Frankfurt Milan0

40

80

120

160

Headquarters (Inward FDI)

Source: fDi Markets (www.fdimarkets.com) from the Financial Times – Q2 2009. Number of Greenfield FDI projects attracted into the location since 2003

LONDON HAS BEEN VOTED

♯1 EUROPEAN CITY FOR BUSINESS

FOR THE 21ST YEAR

EUROPEAN CITIES MONITOR 2011Top European Cities to do

businessBest cities for easy access to markets or customers

European City

Rank 2011

Rank 2010

Score 2011

Score 2010

Change

London 1 1 1.5 1.31 0.19

Paris 2 2 1.09 1.15 -0.06

Frankfurt 3 3 0.68 0.74 -0.06

Brussels 4 5 0.46 0.49 -0.03

Madrid 5 7 0.45 0.4 0.05

Berlin 6 9 0.44 0.37 0.07

Amsterdam 7 4 0.42 0.6 -0.18

Hamburg 8 15 0.35 0.31 0.04

Munich 9 11 0.34 0.37 -0.03

Milan 10 6 0.33 0.42 -0.09

6

European City Ranking 2011

London 1

Paris 2

Frankfurt 3

Amsterdam 4

Berlin 5

Barcelona 6

Madrid 7

Brussels 8

Munich 9

Zurich 10

GFCI 11 TOP 5 AREAS OF COMPETITIVENESS

Rank People Business environment

Market access

Infrastructure General competiveness

1 London London London London London

2 New York New York New York New York New York

3 Hong Kong Hong Kong Hong Kong Hong Kong Hong Kong

4 Singapore Singapore Singapore Singapore Singapore

5 Tokyo Seoul Tokyo Tokyo Seoul

5 Chicago Chicago Zurich Seoul Tokyo

7 Seoul Tokyo Seoul Zurich Chicago

8 Shanghai Zurich Chicago Chicago Zurich

9 Boston Toronto Shanghai Geneva Toronto

10 Zurich Geneva Toronto Frankfurt Shanghai

7

LONDON’S SET UP COSTS

Tokyo Dubai Frankfurt Shanghai NYC (NY) Paris Singapore London Toronto0

1

2

3

4

5

6

7

8

Cost of establishing a business (percentage of income per capita)

Source: World Bank Doing Business Guide, fDi Intelligence, from the Financial Times Ltd, 2012

RIGIDITY OF EMPLOYMENT INDEX

Paris Frankfurt Shanghai Tokyo Toronto Dubai London Singapore NYC (NY)0.0

10.0

20.0

30.0

40.0

50.0

60.0

Rigidity of Employment Index

Source: World Bank Doing Business Guide 2012, fDi Intelligence, from the Financial Times Ltd

COST & QUALITY COMPETIVENESS

London Tokyo NYC (NY) Shanghai Paris Singapore Toronto Dubai Frankfurt0

20

40

60

80

100

120

140

160

Quality Index

Cost Index

Source: fDi Intelligence, from the Financial Times Ltd (2012)

TAX LEVELS COMPARED BY LOCATIONThe UK remains competitive when looking at total tax on profits, compared to locations like New York, cities in Germany or Paris

Dubai

(UAE)

Singa

pore

Toron

to (C

anad

a)

Lond

on (U

K)

New Y

ork (

US)

Frank

furt

(Ger

man

y)

Tokyo

(Jap

an)

Shang

hai (

China

)

Paris

(Fra

nce)

0

10

20

30

40

50

60

70

Profit tax (%) Labor tax and contributions (%)Other taxes (%)

Source: Ease of Doing Business 2012

THINK OPPORTUNITYLONDON’S UNIQUE BUSINESS BENEFITS

ACCESS TO ALMOST

12 MILLION CONSUMERS

Source: 1 Eurostat regional statistics, 2009

4TH RICHESTCITY IN THE

WORLD BY 2025

Source: 1 Eurostat regional statistics, 2009

OPEN FOR BUSINESSEUROPE’S ♯1 LOCATION IN EUROPE FOR FINANCIAL AND

BUSINESS SERVICES AND CREATIVE INDUSTRIES

LONDON IS ONE OF THE MOST COST-EFFECTIVE CITIES IN EUROPE TO

ESTABLISH A BUSINESS

Milan Madrid Amsterdam Dusseldorf Frankfurt Brussels Geneva Paris London Dublin0

5

10

15

20

Cost of establishing a business

Lower set up cost compared to other

European cities

Source: World Bank Doing Business Guide 2010, fDi Intelligence, from the Financial Times Ltd.

LONDON OFFERS ONE OF EUROPE’S MOST FLEXIBLE LABOUR MARKETS

Madrid Paris Dusseldorf Frankfurt Amsterdam Milan Brussels Geneva Dublin London0

10

20

30

40

50

60

Rigidity of Employment

Source: World Bank Doing Business 2010, fDi Intelligence, from the Financial Times Ltd

Low rigidity of employment in London

LONDON’S CENTRAL LOCATION…

LONDON’S DIVERSE TALENT POOL

LONDON HAS A HIGHLY-SKILLED WORKFORCE

More than half (53%) of London’s working population are highly qualified2

London Brussels Amsterdam Paris Geneva Madrid Frankfurt Dusseldorf Milan Dublin0

10

20

30

40

50

60% of population with tertiary education

Source: 1. Urban Audit; National Statistics, fDi Intelligence from the Financial Times Ltd. 2 ONS, 2007-2008

700,000 OF LONDON’S 4 MILLION WORKFORCE COMMUTE INTO LONDON ON A

DAILY BASIS

LONDON’S TALENT POOL With a working population of 3.6 million

and a further 4 million in the surrounding region, London has the resources to supply a highly educated and experienced workforce

London employs 24% of all GB employee jobs in computer and related activities and 22% of all GB telecommunications employee jobs

118,000 people are employed in the Computer Software and Applications industry in London, increasing to 161,700 people when including those employed in the telecommunications industry

Furthermore, London is the leading UK destination for overseas talent, accounting for 25% of all overseas students in the UK – and London’s universities work closely with the business community to ensure delivery of the talent needed

2 out of the top 10 universities worldwide are London-based

2012 ranking

2011 ranking Institution name

1 3Massachusetts Institute of

Technology (MIT)

2 1 University of Cambridge

3 2 Harvard University

4 7UCL (University College

London)

5 5 University of Oxford

6 6 Imperial College London

7 4 Yale University

8 8 University of Chicago

9 13 Princeton University

10 12California Institute of Technology (Caltech)

Source: QS World University Rankings 2012/13

DOMESTIC & INTERNATIONAL GRADUATES IN LONDON IN 2010/11 London boasts access to some

of the best graduate talents in the world, with more top world ranking universities and leading edge creative courses than any other city. Creative arts & design, architecture, building & planning, and Mass communications are the second most popular subjects studied, following business, with 25,650 graduates

Creative arts and design represent accounts for over 16,000 graduates (domestic & international)

Mass communications and documentation represented just under 5,000 graduates in 2010/11

About 4,600 London universities students graduated in architecture, building & planning in 2010/11

23

Veterinary science

Combined

Agriculture & related subjects

Mathematical sciences

Physical sciences

Historical & philosophical studies

Architecture, building & planning

Mass communications & documentation

Languages

Medicine & dentistry

Law

Computer science

Engineering & technology

Biological sciences

Education

Social studies

Creative arts & design

Subjects allied to medicine

Business & administrative studies

0 5000 10000150002000025000

Source: Higher Education Statistics Agency 2010/11

DOMESTIC & INTERNATIONAL STUDENTS IN LONDON IN 2010/11 Future access to talents from

London universities in creative courses is well prepared. Creative arts, design and architecture & planning are the second most popular subjects studied, following business, with 59,000 students for 2010/11 academic year.

Creative arts and design represent one of the most popular subjects with just under 47,160 students (domestic & international)

Mass communications and documentation represented just under 12,830 graduates in 2010/11

Architecture, building & planning accounted for over 11,780 students at the same period

24

Agriculture & related subjects

Combined

Veterinary science

Mathematical sciences

Physical sciences

Architecture, building & planning

Mass communications & documentation

Historical & philosophical studies

Law

Languages

Medicine & dentistry

Computer science

Engineering & technology

Biological sciences

Education

Social studies

Creative arts & design

Subjects allied to medicine

Business & administrative studies

0 20000 40000 60000 80000

Source: Higher Education Statistics Agency 2010/11

40% OF LONDON’S WORKFORCE WERE

BORN ABROAD

Source: LSE London’s Place in the UK Economy 2009 – 2010

CONNECTIVITY

DIRECT FLIGHTS TO MORE THAN

450 DESTINATIONS

Source: 1 OAG Worldwide

TRANSPORT LINKS Paris and Brussels can be reached by

Eurostar high speed rail service: London to Paris: 2 hours 15 mins London to Brussels: 1 hour 51

mins

In 2011, London was voted Europe’s most

internationally accessible city by analysts

Cushman & Wakefield for the 22nd consecutive

year running Five international airports handle over 120

million airline passengers a year, operating

direct flights to over 300 international

destinations worldwide All major European business locations can be

accessed within two hours flight time from

London. There are 6,400 weekly direct flights

to European destinations London sits at the hub of the UK’s road

transport network, with the M25 providing

excellent access to major routes covering all

of the UK London has one of the world’s largest over-

ground/underground rail networks, with daily

average trips reaching 4.3 million in 2008 -

more than any other European city

TRANSPORT - AIRPORTS London’s five international airports

handle over 120 million airline passengers a year and operating direct flights to over 300 international destinations worldwide

All major European business locations can be accessed within two hours’ flight time from London’s airports

The table below indicates the frequency of flights between London and other major EU business centres

Weekly direct flights from London to major European destinations

Key London airport transport links

Destination No of weekly Flights

Munich 93Milan 122Brussels 56Amsterdam 172Stockholm 96Frankfurt 136Berlin 76Rome 66Madrid 108Paris 51

Source: OAG Flight Disk (week of 25th April 2011)

Airport Links

Heathrow Heathrow Express: direct service departing to/from Paddington (Central London) every 15 mins, duration 15 mins. Underground: Heathrow to Central London - 30-40 mins. By road: Distance is 30 km

Gatwick Gatwick Express: direct service departing to/from London Victoria (Central London) operating every 15 mins (duration 30 mins). 49 km and 1 hours drive from Central London.

London City

20 mins from Bank/Canary Wharf (Central London) by DLR. 16km from the West End and Westminster, 10km from the City of London and 5km from Canary Wharf.

Stansted Stansted Express: direct service to/from Liverpool Street Station (Central London) departing every 15 mins. Stansted is 57 km and about 1 hour drive from Central London.

Luton Main national railway via Thameslink services to/from King’s Cross Station. 65 km and approx 1hour drive from Central London

SUPER-FAST BROADBAND CITY

London was recently designated a super-fast broadband city. Rolling out fibre broadband speeds of 330Mbps from spring (from 80mbps). 90% London population will have superfast broadband by 2015. ½m

Wi-Fi hotspots (including on transport network).

VALUE

LONDON OFFERS THE BEST VALUE FOR INVESTMENT

London Paris Madrid Ams-terdam

Frankfurt Milan Geneva Dublin Dusseldorf Brussels0

20

40

60

80

100

120

140

160

180

200Regional HQ Cost Quality Analysis

Quality Operating Cost

Source: fDi Intelligence, from the Financial Times Ltd

FUTURE GROWTH

LONDON IS THE ONLY EUROPEAN CITY IN THE

TOP 20 FASTEST GROWING CITIES RANKING

By projected GDP growth 2007-2025 (Source: McKinsey quoted in MarketingWeek 2012)

FUTURE GROWTH

Canary Wharf Group recently announced plans for £2billion expansion and launched Europe’s largest ‘FinTech’ accelerator space.

£6.5 billion has been invested in upgrading and extending transport links.

£11billion investment in east London around the Olympic Park.

Three quarters of the £9billion Olympic budget is for long term regeneration of the area

National Infrastructure plan for the UK identified £250billion worth of investment to 2015.

A UNIQUE LIFESTYLE

LONDON IS ONE OF THE MOST MULTI-CULTURAL, COSMOPOLITAN CITIES

IN THE WORLD

CULTURE

2 opera houses

4 world heritage sites

5 world class symphony orchestras

10 National Trust sites

10 English Heritage sites

+100 theatres and music halls

+200 museums and galleries

30% OF LONDON’S AREAIS GREEN SPACE

QUALITY OF LIVING IN LONDON VS GLOBAL CITIES

Singapore Tokyo Frankfurt London Paris Toronto NYC (NY) Dubai Shanghai0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

Quality of living index

Source: fDi Intelligence from the Financial Times Ltd, 2012

A FAMILY FRIENDLY ENVIRONMENT London has 27 offering

the international baccalaureate curriculum, with North London Collegiate School in Edgware and King’s College in Wimbledon performing very strongly

London also hosts international schools such as the French Lycee Charles de Gaulle and highly thought after private schools

Oxford and Cambridge universities are 1 hour away on the train

Source: fDi Intelligence from the Financial Times Ltd, 2012

Lond

on

Singa

pore

Shang

hai

Toron

toNYC

Dubai

Tokyo

Frank

furt

Paris

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Number of international baccalaureate schools

40INTERNATIONAL SCHOOLS

WHY COMPANIES CHOOSE LONDON …

“We chose London because of the wealth of talent and expertise available in conducting complicated cross border transactions.” Mr Zhuobiao Chen, Managing Director in London, CNOOC

“We chose London because it is a more attractive place for Indian businesses. It is the most important business centre in Europe and the financial services industry is very advanced here. Another reason for choosing London was to take advantage of the excellent access to global capital markets.” Samuel Joseph, Bank Representative, The Export Import Bank of India

“This investment confirms the UK’s position as a major worldwide scientific hub for the company. We chose London because of its excellent reputation for clinical research and pool of highly qualified and talented scientists.” Willard Dere, Senior VP & International Chief Medical Officer, Amgen

WHY COMPANIES CHOOSE LONDON …

“We see the UK as a launching pad for the rest of Europe. The UK is a year or two ahead of Europe in terms of investing in new technology. It’s a large market. It has an excellent skilled labour pool. It’s an expensive city but I think you get your money’s worth by having really quality people.

Frank Mahdavi, Chief Strategy Office, MIR3

"Being in London means we have the ability to reach and develop the market far faster. Previously we were trying to service our European customers from the US – the wrong side of an eight-hour time difference.”

Mike Grafham, Customer Success (EMEA), Yammer Inc

“The attraction of London is the people and the talent. It was obvious that London was the place to be.”James Harrison, CTO, Brit Services Technology

Location Prime Office Rents per sq. ft. per annum

London

West End Covent Garden Paddington

Soho City Central City Core Midtown Eastern Fringe Northern Fringe Canary Wharf

Outer London locations Chiswick Croydon Hammersmith Harrow Kingston upon Thames Uxbridge Romford Wimbledon Heathrow Uxbridge

£47.00£41.00£40.00

£53.00£43.00£28.00£30.00£35.00

£37.50£25.00£35.00£16.50£22.50£28.50£14.00£29.50£22.00£28.50

Location Prime Office Rents per sq. ft. per annum

BelfastGlasgowManchesterBirmingham BristolLeedsEdinburghCardiffNewcastleLiverpoolCambridgeOxfordReadingBracknellMaidenhead

£13.00£28.50£29.50£27.50£27.50£25.00£25.50£22.50£20.00£21.00£27.50£22.00£29.00£22.00£30.00

Selected EU locations

DublinGenevaParisZurich AmsterdamBarcelonaMadridStockholmMunichCologne

£25.70£65.00£61.50£68.50£25.00£16.50£22.50£36.50£27.00£19.50

PRIME OFFICE RENT COMPARISON

Note: All prices indicate average asking prices for prime rents per sq.ft. per annum in selected areas (exclusive of rent free periods). Prices quoted are for rent only and exclude rates or service charges. Source: CBRE/Jones Lang LaSalle/GVA/Knight Frank/ CoStar, Q1-Q2 2012

HOW LONDON & PARTNERS CAN HELP YOUR BUSINESS

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THE EXPERTS ON DOING BUSINESS IN LONDON

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