A new survey has found that only ten per cent of businesses in the UK think London's world status will grow over the next five years.
Research by professional services firm KPMG found that 77 per cent of senior executives think London is a good place to do business, a figure down from 95 per cent 12 months ago.
Some 79 per cent of respondents also claimed they were struggling to find people with technical skills in the capital, with 51 per cent relying on staff from overseas.
Richard Reid, London chairman of KPMG, said the capital needs "much-needed investments" in infrastructure and transport to "ensure long-term competitiveness".
He added: "The capital has felt the full force of the credit crunch and is facing tough challenges on many fronts; not just from the economic conditions but from new emerging financial centres, and the internal pressures of the City itself."
Accountancy Magazine recently reported that KPMG had promoted eight women to internal partners during 2008, making up 26 per cent of overall partnership promotions.
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