A Europe-wide report has suggested that London is among the best places in the region to do business, due in part to its communications infrastructure.

Growth in broadband services, web-based data access, IP PBX systems and wide area networks have all supported companies working in the UK capital.

And this aspect of the city drew praise from the European Cities Monitor report, according to foreign direct investment agency Think London.

Other factors singled out as being exemplary crutches for business to build on including London's transport system, the availability of office space and the number of languages spoken by its citizens.

Think London research manager Marc Hardwick suggested that firms have been known to use the business-friendly climate of London as a "springboard" to enter the wider European markets, adding: "London has a history of being the best place to do business".

Mr Hardwick also highlighted that London is proving popular among companies worldwide, having experienced a 12 per cent rise in the number of firms from Europe, Asia Pacific or the Americas choosing the city as their relocation destination.