Birmingham is still a great place to do business even if flagship projects like airport expansion and the New Street station revamp are taking longer than first hoped, according to top businessman Mark Hopton.

And Mr Hopton, Midlands chairman of accountants KPMG, urged the city's leaders to listen more to the ways younger people, such as Birmingham Future members, wanted the future shaped.

His call came as he warned that 2008 would be a "tougher year" for most. Mr Hopton was speaking as KPMG revealed its 2006/7 annual results which saw average profit per equity partner - all partners hold equity status - of £806,000, up 19 per cent. Turnover was ahead 11 per cent at £1.6 billion while pretax profit hit £447 million, a rise of 20 per cent.

Staff numbers across the UK reached 10,890, with those in Birmingham at 1,100, around a seven per cent increase.

There are 600 equity partners in the country of which some 60 are in Birmingham. Bonus and profit share payments to UK staff shot up 25 per cent to £100 million - an important factor in recruiting and retaining staff along with a commitment to the community and environment.

Mr Hopton said the firm had done particularly well in the middle market - companies with turnovers of £10 million to £500 million - typically owner managers and small and medium sized enterprises. "It has been very strong," he noted. "It is very much a case of a market share gain."

And he also cited the public sector as a growth area including universities and housing associations.

Some 15 per cent of the firm's total headcount now work in this area.

KPMG recently formed a carbon advisory group which it says is something which seems on most businesses' minds. More and more companies were asking for help in this area.

Mr Hopton is masterminding KPMG's planned move into the new No.1 Snow Hill Plaza office block, currently under construction. It is taking six floors in the building which has a completion date of late 2009.

He said: "It is an important statement of our confidence in Birmingham."

That is being matched in London where the firm is developing a new headquarters in Canary Wharf, set to reduce carbon emissions by 50 per cent. The UK firm is claiming 79,000 tonnes of CO2 saved as it attacks the issue on a five-strong front of energy, paper, water, waste and travel.

As for that tougher year in 2008, Mr Hopton said: "There is uncertainty for all to see in the credit crunch."

But he sees this as an opportunity as firms look to cut costs and conserve cash.

"Already we are seeing signs of demand for different sorts of services," he commented.

It will be the last time KPMG produces standalone UK figures. From next year it will report as KPMG Europe following a merger of member firms in the UK, Germany and Switzerland.

That creates a 20,000 partner and staff, four billion euro (£2.85 billion), organisation that would rank fifth in the world if it were a separate entity.

Birmingham senior partner Mel Egglenton said there were ambitions to build on the deal and bring in other countries. He believes it will allow investment to become more efficient.