Bang for your buck: Here are the best locations to run your business in the UK
Having developed the ranking system based on evidence from a variety of metrics linked to setting up and running a business, Leeds City Region Enterprise Partnership (LEP) aims to highlight some of the best locations around the country for business leaders to set up shop.
The ten metrics used to create the ranking system were:
- Price per square foot for commercial rent properties1
- Parking availability and price (£)2
- Number of finance and support schemes available from Government3a & 3b
- Broadband speed (average download speeds Mbit/s)4
- 4G coverage (%)4
- Unemployment rates (%)5
- Quality of life score6
- Young population (ages 18-34) (potential employees for businesses)7
- Number of arts, entertainment and recreation services/professional, scientific and technical businesses per 1000 18/34-year-olds8
- Annual media gross pay (2019)9
The LEP also reviewed population statistics10 in the top ten metropolitan districts, as well as the capital, and ranked each according to the ten metrics
The three best areas for business leaders to pay attention to were revealed as Leeds, Kirklees and London, with Leeds leading the way as the number one location for businesses across all metrics.
The top ten places to run a business from in the UK according to these measures are:
- Leeds
- Kirklees
- London
- Bradford
- Liverpool
- Birmingham
- Wakefield
- Coventry
- Manchester
- Sheffield
With the average rent per square foot coming in at £301, Leeds is not the lowest cost destination to host a business. Kirklees* takes that coveted spot with the average rent per square foot in the area costing only £13.501.
However, Leeds ranks best in terms of low unemployment rates (4%)5, a high quality of life score (7.76)6, a large percentage of young population in the city (222,673)7 and a high annual pay (£33,245)9, helping the city achieve the overall top spot.
Looking outside of Leeds City Centre, other areas within Leeds City Region also ranked highly for low rent prices alongside Kirklees* (£13.50)1, including Bradford (£15)1, Wakefield (£16)1 and Sheffield (£25)1. The findings indicate the Leeds City Region should be a real consideration for any business leaders looking for a new location.
Bradford also ranked highly for the average cost of parking, which on a weekday is only £3.342 compared to rocketing prices in places such as London (£44)2.
For businesses still looking to establish their headquarters in London, leaders should be prepared to pay 344% more per square foot compared to Kirklees, with the average rent in the capital coming in at a hefty £60+ per square foot.
Unsurprisingly, businesses based in the capital have access to a higher volume of government funding schemes (44)3 compared to other cities, however everywhere within the Leeds City Region (including Leeds, Bradford, Wakefield and Kirklees) has access to an impressive 12 schemes3b. Manchester (10)3, Coventry (4)3, Birmingham (3) and the other listed cities also have access to a range of funding opportunities, should businesses qualify.
Other costs to be considered include energy bills, however this is determined by the size of the business rather than location. Large businesses can expect to foot a bill of around £3,139 each year for energy compared to £706 for small businesses11.
