Leeds is the best city for startups outside of London

According to a new study based on government and business data, Leeds was named the best British city outside London for starting a new business.

The study, compiled by personal finance experts on independent price comparison website NerdWallet, follows record growth in startups. More new businesses were launched between April and June than any other quarter since records began.

In addition, workers are increasingly leaving London for other UK cities thanks to the rise in remote working. Channel 4 recently announced plans to move its headquarters to Leeds, and major employers, such as the BBC and the UK Civil Service, are also relocating key operations to cities outside the UK capital.

NerdWallet researchers rated the UK’s largest cities (outside London) for their friendliness to startups and analyzed the latest data from government and business sources, including the Office for National Statistics (ONS).

Leeds ranked first in the study, climbing three places to first place since the study was last completed in 2019. Edinburgh finished second, Birmingham third, Glasgow fourth and Manchester fifth. Leeds also had the second highest corporate survival rate and the second largest active business population.

Key statistics on Leeds from the report

The researchers for the study examined key records of business survival rates in each city, the size of the active business population, the average rental cost in each city, the size of the population, the average monthly wage in each area, and the educational level of the local workforce.

The new study highlights the economic potential of cities outside the UK capital and also follows the recent cabinet reshuffle in Westminster and the UK government‘s renewed message to “level up” to spread prosperity across the country.

Nic Redfern, Finance Director at NerdWallet, commented: “It is fantastic to see so many in the UK starting their own business despite the challenges of supply chains and Covid-19. As we recover from the pandemic, it is important that we do more to support new startups in key UK cities like Leeds to realize their economic potential.

“Outside of London, Leeds is one of the UK’s leading cities for financial and legal services, but its economy is diverse, including retail, manufacturing, and the creative and digital industries.”