1. Pay more
2. Offer amazing benefits.
3. Sponsor tech events and become active in a tech community.
That's what I say to everyone who "can't find anyone decent." Decent people can pick and choose at the moment. If they aren't choosing you, you're not giving them enough reasons.
Hiring contractors is another way of quickly getting access to a very large pool of skilled workers, but I find that most smaller companies never bother, even though the TOC of having a contractor on board may not be all that much more than a permanent employee.
They can have been given their powers by a cat-god in an acid-induced hallucination for all I care, as long as they can pass a technical interview.
The reality is companies need to get the right people in. Send them on courses, get them involved and pay them properly. Use contractors to fill the gap, pay the high rates then remove them when 'the right people' are ready (and/or offer contractors an appropriate compensation to go perm)
[edit] I think the London market is way out of wack. I've had offers to go perm at the equiv of 3~ months freelance pay, it just doesn't make even remote sense. Even more so when uncertainty is rife.
Better to be paid more and have a nest egg for the rainy days than live day to day on a salary and always fear the entire department getting chopped one day for reasons beyond your control.