The UK’s services sector sees its fastest growth in nearly a year, fuelled by strong demand and falling costs, according to a new report. Yet can this be sustained? Will Rachel Reeves generate sufficient income? The report highlights the most favourable UK cities and districts to start a new business in.
To identify which UK cities and districts offer the best conditions for starting a business, the company BestBrokers analysed the latest data from the UK’s Office for National Statistics.
Researchers then deployed a weighted index, giving equal importance to six key factors: five-year survival rate, active companies per 1,000 people, share of high-growth firms, export value per company, gigabits of Internet coverage, and labour productivity. The ranking covers 69 of the UK’s most populous cities and districts.
The analysis reveals that the Scottish capital of Edinburgh scores 60.67 out of 100 points on the index, making it the number one city in the UK for starting a new business. In England, Derby tops the list with 56.59 points, and Belfast is first in Northern Ireland scoring 56.56 points.
The best UK cities and districts to start a business in:
- Edinburgh – 60.67 / 100
- Derby – 56.59 / 100
- Belfast – 56.56 / 100
- Solihull – 54.90 / 100
- London – 53.73 / 100
- Bristol – 52.93 / 100
- Swindon – 52.40 / 100
- Milton Keynes – 52.02 / 100
- Leeds – 51.34 / 100
- Kingston upon Hull – 50.70 / 100
As can be seen, Edinburgh tops the list as the most favourable UK city for starting a business, earning a score of 60.67 out of 100 on the weighted index. The Scottish capital also demonstrates exceptional productivity, with a labour index score of 134.4, well above the national benchmark of 100.
In England, Derby leads with 56.59 points, outperforming larger hubs like London (53.73) and Bristol (52.93). Belfast ranks first in Northern Ireland with 56.56 points, reflecting the region’s resilience; seven of the UK’s top ten areas for five-year survival rates are located there.
Moreover, several locations surpass the UK’s average productivity index, including Swindon in England (148.2), Flintshire and Wrexham in Wales (101.9), and Edinburgh in Scotland (134.4). Despite its largely rural character, Northern Ireland stands out for business resilience, with seven of the UK’s top ten cities and districts for five-year survival rates located in the region.
It is also of noteworthiness that the affluent Greater London town of Bromley tops the UK for business density, with 183.3 companies per 1,000 residents, the highest company-to-population ratio nationwide.
On the measure of output, Swindon tops the UK’s productivity rankings with a score of 148.2, making it 48.2% more efficient than the national average (baseline of 100). Not far behind is Edinburgh, Scotland’s only entry in the top 10, with a score of 134.4, reinforcing its reputation as the best city in the UK to start a business. London takes third place with a productivity score of 128.9, thanks to its strong infrastructure and access to top talent. Other high-performing cities and districts include Croydon (124), Milton Keynes (120.8), Southampton (112.7), Brighton and Hove (113), and Enfield (111.1). While Manchester remains above the national average with a score of 106.9, it doesn’t make the top 10.
