UK business owner confidence has reportedly dropped to a three-year low, but the North and Scotland are bucking the trend, according to The Co-operative Bank’s new Business Growth Index, which ranks 30 major UK cities based on key factors such as the number of high growth enterprises, five-year business survival rates, job openings, salary growth, unemployment rates and energy costs.
Leeds is the UK’s best city for business growth, the survey reveals, with a five-year business survival rate of 38.5%. The city recorded an impressive 205 high-growth enterprises in most recent data, and currently has around 20,000 new job openings (or 4,510 per 100,000 people), indicating workforce demand and strong economic activity. Leeds also claims competitive energy costs at 23.86p per kWh.
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Edinburgh takes second place, with the lowest unemployment rate of 2.6%, the highest salary growth at 9.7%, and a 38.6% business survival rate. The Scottish capital also has 13,093 new job openings, offering an abundance of opportunities for talent, and boasts competitive energy costs at 24.31p per kWh.
Sheffield follows in third with a 44.6% five-year business survival rate. It also shares Leeds’ competitive Yorkshire energy price of 23.86p per kWh, and a 7.3% salary growth rate, appealing to any entrepreneurs seeking stability and growth.
The top five in the survey is rounded out by Bradford and Manchester, while Hull, Glasgow and Sunderland also make a North-heavy top 10.
Lisa Galley, head of business banking products at the bank, said: “With the Budget now delivered, entrepreneurs will be reflecting on how it will impact them. While some measures, like a permanent reduction in business rates across the retail, leisure, and hospitality sectors, will offer some welcome relief. However, the Budget also brought with it some challenging updates, including the increase to the national minimum wage which will inevitably have a direct impact on payroll costs.
“Many business owners will now be assessing how the changes balance out in practice, particularly in regions needing a boost to their growth and competitiveness.”
You can view the full study here.
