Depressed market conditions and a freeze on pay and employment continue to hamper business confidence, a survey of south London businesses has revealed, but firms are hopeful of a better 2010.

More than 350 firms responded to the South London Business survey, believed to be the largest audit of business’ views south of the Thames since the recession began.

More than half said they did not expect salaries to rise next year, while 60 per cent said employment levels would remain the same.

Some 40 per cent believed growth in the second half of 2009 would be lower than in the first.

Prospects for next year look better with 45 per cent of firms planning to increase market share, and a third planning to either launch new products or expand into new sectors.

Peter Pledger, chief executive of South London Business, which represents business interests in south London, said: “It is clear that firms in South London remain resilient in the face of adversity, with so many of them continuing to try to grow their businesses during such difficult times.”

Firms said they choose south London as a location for its access to customers and quality of life.

The top three issues for businesses were the cost of business rates, premises and transport links - which could decrease south London’s appeal as a business location, according to the survey.

“The Government is not being fair as the increases in business rates for London firms and the supplementary business rate are going to create an unsupportable tax burden for most south London companies,” Mr Pledger said.

“The Government needs to realise its role should be to create an environment in which business growth can thrive, rather than continue to penalise South London for its success.”

The largest proportion of survey respondents came from Croydon and Bromley, followed by Kingston, Richmond and Merton, then Greenwich, Lambeth, Sutton, Lewisham, Bexley, Wandsworth and Southwark.

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