Job losses fear for London firms

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City firms fear more job losses

Many of the capital's top business leaders expect to lay off workers over the next year, a BBC London poll has found.

Most believed that the new 50p tax rate is a barrier to attracting the best talent to London.

But a significant number thought the worst of the recession may be over.

The questionnaire polled 67 London executives who each sit on the board of a company which is a member of the business lobby group London First.

In another sign of criticism towards the government, most firms said ministers had not performed well in setting its tax and spending priorities.

In an interview with BBC London, Chancellor Alistair Darling said the capital's prosperity is "critically important" for the whole of the country.

"London is a powerhouse and will remain a powerhouse," he said.

"Provided we make sure we remain competitive with the rest of the world - provided we make sure we learn from what's happened in the city, the financial services industry will remain critical."