Business leaders are cautioning that the London economy depends on short-term worker visas. They also want the expediting of the business visa application process.The London Chamber of Commerce and Industry warned that an overzealous crackdown on immigration could have a negative economic impact. It released the warning concurrently with the release of its London quarterly economic survey, which showed an increase in business executives' optimism. "London's success is built on its openness and diversity, where businesses can access an unrivalled pool of talent, perspectives, experiences, and languages," said Karim Fatehi, chief executive of LCCI."We must make sure that immigration and visa policies promote economic growth and support our economic potential in order to maximize employment in London and decrease economic inactivity." "The government must collaborate with businesses to deliver a pro-business skills and immigration system in order to ensure that London maintains its position as a leading global business hub," he continued.

“This will require a comprehensive set of measures including increased provision of short-term worker visas across several key industrial sectors and accelerated business visa processes, as well as developing a broader, long-term immigration and skills strategy.”

The LCCI survey found a “significant increase in optimism” about the state of the economy and sales in the third quarter of 2024.Key findings for London businesses included:

* Four in ten anticipate economic growth in the capital over the next 12 months, up from 35 per cent who said the same in Q2 of 2024.

* Thirteen per cent reported an increase in their workforce size in Q3 2024.

* Twenty-six per cent expected their workforce to increase in size over the next quarter.

* Twenty-six per cent reported an increase of domestic sales, with 22 per cent a rise in domestic orders.

* Ten per cent reported an increase in export sales, with the same amount seeing an increase in export orders.

* Twenty-nine per cent reported a rise in cashflow, with 18 per cent more investment in plant and equipment.

Mr Fatehi stressed: “It’s encouraging to see businesses expressing a heightened sense of optimism about their future prospects and the overall economy, reflecting a more positive outlook than we have seen in recent years.

“Nevertheless, as we approach the impending Budget, the latest findings from the Q3 Capital 500 highlight an urgent need for the government to provide reassurance to the business community through the long-term stability essential for sustained growth.”

Chancellor Rachel Reeves has warned of “tough” decisions at the Budget on October 30 on more tax rises and public spending cuts.

Speaking at Labour’s annual rally in Liverpool last month, Sir Keir Starmer reassured businesses that he is not going to “chop off their legs” with a rapid clampdown on visas for workers from abroad in a shift to skill up domestic workers.

The Prime Minister said he did not want to make firms “fall over” due to changes immigration policy.

Official figures on Tuesday showed the UK population saw its largest annual increase in size since the early 1970s.

Net international migration was the main contributor to the rise, with the population estimated to have risen by one per cent in the year to June 2023, according to the ONS.