More than half of London's business leaders say we're in danger of losing our competitive edge over rival cities.

Transport, a skills shortage and a tax on 'non doms' is making business more difficult in London and handing advantage to New York and New Delhi according to the CBI/KPMG Business Survey.

One in ten

Just one out of ten business leader though the cities competitiveness had improved in the twice yearly poll.

While the proposed £30,000 duty on non domiciled people was top of the list of concerns improving transport was the top priority for the new mayor. Just 38% thought the commuter infrastructure was good.

Skills shortage

The apparent lack of skills in London's job market was second only to transport worries. A staggering three quarters of business leaders said they were short on skilled staff.

New applicants shoe poor numeracy, literacy and a lack of employable skills. The credit crunch and the general global economic slow down was a factor but our own problems are exacerbating the situation.

Overall most agreed that while London was still a good place to do business only 37% rated it very good - the lowest score in January 2005.