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The CBI urged the leaders of the London 2012 Olympic Games to ensure full business engagement in delivering a positive lasting legacy for the UK.

As well as building the sporting facilities and other infrastructure, business is keen to be involved in improving skills and employment in the capital, particularly East London.

The Games' organisers have already worked with London business organisations to set up effective ways for firms to get involved in the event and win contracts, the CBI said.

Drop in anticipated direct business benefit

The Games are expected to generate £10bn for business and add £21bn to the economy, yet firms outside transport and construction, particularly small ones, still feel excluded.

While two-thirds of respondents to the forthcoming CBI/KPMG London Business Survey said the Games will help the capital, only 44 per cent expect a direct benefit for their business.

Disappointingly, this is down on last December’s survey when 58 per cent of firms felt they would get a direct boost. Respondents included major companies and chief executives often filled in the questionnaire.

The dominant sectors were professional services (43 per cent of respondents), energy/manufacturing/construction (18 per cent), banking/finance/insurance (13 per cent), distribution/retail/hotels & restaurants (8 per cent) and transport (5 per cent).

The lack of expectation of a direct Olympic dividend rises to 60 per cent among firms with fewer than 100 staff, with just 24 per cent optimistic about the benefits for their company.

Surprisingly, despite the £2bn tourist boost the Games are expected to deliver for London alone, only 44 per cent of hotels, restaurants and retailers expect to benefit from the Games.

Lasting legacy 

CBI director-general Richard Lambert, speaking at the CBI 2008 Business Summit, told  London 2012 leaders, including Sebastian Coe, Olympics minister Tessa Jowell, and London mayor Boris Johnson, on Wednesday that the 2012 Games are a once in a lifetime opportunity for London.

“We should make every effort to ensure they are a roaring success and deliver a lasting legacy for the UK. This doesn't just mean building an impressive array of stadiums, velodromes and swimming pools but is also about making a meaningful difference afterwards,” he added.

He called for the business community to be as involved in the Games as it can, including the long-term plans to improve the skills, training and job opportunities in the East End.

He warned, however, that while the CBI/KPMG survey shows that half of businesses are enthusiastic about the Games, just as many are yet to wake up to the opportunities on offer.

Lambert urged those who were sceptical to look at how they could get involved, commercially and in the community, in the Games.

He added that the Olympic organisers should build on their efforts to ensure the opportunities are relayed clearly to all businesses, regardless of their size or sector. 

"The eyes of the world will be on London in 2012 - lets show how the Games can be a major catalyst for change when the organisers, government and business work together,” Lambert concluded.

Upskilling of young people 

Richard Reid, chairman of KPMG London, said that whilst London 2012 was set to be spectacular showcase for Britain's athletes and our ability to stage a memorable event, it was absolutely essential to use this opportunity to do more then entertain the world for six weeks.

He pointed out that the real value of London 2012 had to be the legacy that it would leave for the UK's businesses and particularly the communities in East London.

Reid said that a key area of benefit to business and the community will be the upskilling of young people in the capital for the 70,000 volunteering posts that are needed for the games.

"Reducing the skills shortage across London is key in keeping us competitive and now employers have an opportunity to get directly involved in making sure that people are given the skills and training that they are looking for,” he added.

Reid explained that early action now meant that dividends for both businesses and the community would start to be realised before 2012 and said that embedding meant that it would last long beyond 2020.

"From our own experience we know how valuable volunteering and mentoring programmes are to local communities and our own staff who get involved. There is a great deal for business to gain by making sure that they get involved in as many of the volunteering opportunities that are available from London 2012 as possible,” he noted.

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