UK Business Hotspots

Small businesses are the lifeblood of the UK economy, accounting for 98% of all enterprises in the country at the start of 2024[1]. This high proportion tells us that the UK is a great place for new businesses to flourish, but which parts of the country are the best for budding entrepreneurs to set up shop?

The experts at Utility Bidder have attempted to answer this question with a study exploring a range of factors across local authorities in all UK countries and regions. This research covers everything from internet speeds and local qualification rates to the proportion of new businesses that survived the last five years.

In addition to the results of this study, new business owners should take time to compare business energy rates and other expenses across suppliers to ensure they start off with the best deals available.

• Only 8.75% of local authorities in the UK have a 5-year business survival rate of 50% or higher.
• Only 27.48% of local authorities in the UK have a median download speed above 100 Mbps.
• Only 17.30% of local authorities in England and Wales have at least 50% of non-domestic properties with positive EPC ratings.
• Local authorities in the South West have the best 5-year survival rate for new businesses, averaging 46.34%.
• The North East has the lowest 5-year business survival rate for new businesses, with an average of 38.53% across local authorities in the area. London has the second-lowest survival rate at 39.16%.

• Islington is the best new business location in London
• Guildford is the best new business location in England
• Edinburgh is the best new business location in Scotland
• Cardiff is the best new business location in Wales
• Lisburn and Castlereagh is the best new business location in Northern Ireland

• Islington Score /10: 8.32

Islington is the best London borough for starting a business in 2025, earning a score of 8.32 out of 10. This North London borough performed very well across the board, with an especially high GDP per capita of £120,410 and very fast median internet download speeds of 137.5 Mbps. Higher GDPs indicate a strong local economy, while faster internet speeds make it much quicker and easier to carry out work online.

Also, a large proportion of non-domestic properties in the area have a positive energy efficiency rating, helping to keep spending on business gas and electricity under control.

• Hackney & Westminster Score /10: 8.22

Two London boroughs, Hackney and Westminster, tied for second place with scores of 8.22 out of 10. Hackney has a very high employment rate of 82.8%, 4.9 train and tube stations per 100,000 people, and an encouraging 5-year business survival rate of 41.1%.

Westminster, on the other hand, has a huge number of office properties available in the area, with 9,905.1 per 100,000 people. Non-domestic properties in the borough are very well-insulated, with 60.8% earning positive EPC (Energy Performance Certificate) ratings, and its business survival rate is even higher than Hackney’s, at 42.1%.

gmailHere we can see which London borough performed best for each factor in our study. Newham has the fastest median download speed at 259.1 Mbps, making it a particularly good location for internet-based businesses, although Sutton has the highest 5-year business survival rate at 44.4%.

Westminster saw the highest GDP per capita and the most office properties per sector, while Wandsworth also came top for two factors: the proportion of people with level 4 qualifications and the number of non-domestic properties with positive EPC ratings.

Waltham Forest has the highest employment rate in the capital, at 83.6%, and Bromley has the most train and tube stations at 7.9 per 100,000 people, making it particularly accessible for commuting.

1. Guildford Score /10: 9.14

Guildford is the best English location outside of London for starting a business in 2025, earning a score of 9.14. Located in Surrey, in the South East, Guildford offers easy access to London, making business meetings and travel very convenient.

In our study, the town performed particularly well for its high number of train stations, with eight per 100,000 people, while also having plenty of office space and a highly educated workforce.

2. West Oxfordshire & Stratford-on-Avon Score /10: 8.98

Two local authorities, West Oxfordshire and Stratford-on-Avon, tied for second place with scores of 8.98 out of 10. West Oxfordshire has a very fast median download speed of 139.0 Mbps, along with a strong 5-year business survival rate of 52.5% and an employment rate of 86.5%.

Stratford-on-Avon, a historic market town in the West Midlands, performed well overall. Famous for its connections to medieval playwright William Shakespeare, the town has become an excellent spot for modern businesses to set up shop.

Stratford-on-Avon has a relatively high GDP per capita at £40,681, a 5-year business survival rate of 48.3%, and an educated workforce, with more than 33% of the population holding level 4 qualifications or higher.

It is useful to consider each factor individually, as different businesses have different priorities. We can see that the top local authority for internet speeds is Rushmoor, in Hampshire, with a super-fast 322.9 Mbps median download speed.

Wyre Forest, in Worcestershire, has the highest employment rate in the country at 88.8%, indicating a strong local economy, while West Devon saw the highest 5-year business survival rate of 59.0%.

Somewhat unsurprisingly, Cambridge, known for its world-class university, has the most well-educated workforce, with 47.8% of the population holding a level 4 qualification or higher.

Manchester has the most office properties, with 1,426.1 per 100,000 people, while High Peak, a local authority in the Peak District, has the most train stations per 100,000 people at 15.3 per 100,000.

Wokingham has the best-insulated non-domestic properties at 71.4%. This means local businesses can benefit from lower spending on business electricity and heating costs, which can be a big strain on company financials.

With so many local authorities in England, we have also divided the results of the study by region to showcase the top local authorities for new businesses in each part of the country.

The top local authority in the North East is Newcastle upon Tyne, which scored 6.14 out of 10, and performed well for its high number of office properties, reliable internet speeds, and respectable GDP per capita of almost £40,000.

The North Yorkshire local authority is the best part of Yorkshire and the Humber for new businesses, with a score of 7.27 out of 10. This expansive area includes many prosperous market towns, such as Harrogate, Skipton and Northallerton as well as the popular tourist spots of Whitby and Scarborough. North Yorkshire benefits from a high employment rate and a strong 5-year business survival rate of 49.4%.

Lancashire’s Ribble Valley was the best-performing area in the North West, with a score of 8.22. This largely rural area performed best for its 5-year business survival rate of 50% and its well-educated workforce, with approximately one in three people having level 4 qualifications or higher.

The top local authority in the East Midlands was Lincoln, which earned a score of 7.55 and recorded a very impressive median download speed of 219.9 Mbps. Meanwhile, Stratford-on-Avon was the top-performing local authority in the West Midlands, with a high GDP per capita, high employment rate, and plenty of train stations for its population.

South Cambridgeshire recorded the highest score in the East of England at 8.54, with plenty of office space, well-insulated properties and a very high employment rate of 86.4%. Meanwhile, Guildford was the best-performing local authority in the South East, earning England’s highest overall score of 9.14.

Last but not least, Exeter is the best place in the South West for starting a new business, recording a score of 8.53 out of 10. This coastal city recorded an impressive 5-year business survival rate of 51.7%, a GDP per capita of more than £52,500 and lots of office space, with more than 1,000 properties per 100,000 people.

1. City of Edinburgh Score /10: 8.20

The City of Edinburgh is the best place in Scotland to start a new business in 2025, earning an overall score of 8.20 out of 10. Scotland’s capital recorded a very respectable median download speed of 100.4 Mbps, a high GDP per capita of £60,764 and 62% of people leaving school with level 6 qualifications or higher (using Scotland’s qualification tiers). Having more highly educated people living locally makes it easier to recruit for specialist roles that many new businesses need to fill.

Despite its strong performance, Edinburgh recorded a 5-year business survival rate of 38.6%, showing that the city remains a competitive location for businesses.

2. Argyll and Bute Score /10: 7.93

The second-best Scottish local authority for new businesses in 2025 is Argyll and Bute, which earned a score of 7.93 out of 10. This mostly rural area covers a large swathe of Western Scotland, including the popular towns of Oban, Islay, and Mull, and is well-known for its whiskey production and seafood. Argyll and Bute performed best with its impressive 5-year business survival rate of 51.9%, which is encouraging for any prospective entrepreneur. 

3. Highland Score /10: 7.87

The third-best local authority in Scotland for new businesses is the Highland district, earning a score of 7.87 out of 10. While the area recorded a low median download speed of just 32.5 Mbps, it performed strongly across all other factors in our study, making it a great place for businesses that aren’t fully reliant on fast internet speeds.

Dundee recorded the fastest median download speed in Scotland, at 286.9 Mbps, making it a top location for tech and internet-based startups. Meanwhile, nearby Aberdeenshire recorded the highest employment rate, 83.6%.

The City of Edinburgh recorded the highest GDP per capita of more than £60,700, while East Renfrewshire, which is just to the southwest of Glasgow, has the highest proportion of school leavers with level 6 qualifications or higher.

The remote Shetland Islands saw the strongest 5-year survival rate of 57.1%, while the sparsely-populated Highland district has the most train stations per 100,000 people at 25.4.

1. Cardiff Score /10: 8.32

Cardiff is the best Welsh local authority for new businesses in 2025, earning a score of 8.32 out of 10. The Welsh capital has one of the fastest median download speeds in the country at 100.8 Mbps, along with a high GDP per capita of £40,950 and more than 1,000 office properties per 100,000 people. With so many office properties to choose from, new businesses should be able to find suitable premises much more easily.

2. Monmouthshire Score /10: 7.40

Monmouthshire, located in the southeast corner of the country, is the second-best local authority in Wales for new businesses. With an overall score of 7.40 out of 10, Monmouthshire recorded a strong 5-year business survival rate of 48.1% and a well-educated population, with 33.1% of people holding a level 4 qualification or higher.

3. Conwy Score /10: 7.34

The historic town of Conwy on the north coast of Wales takes third place with an overall score of 7.34 out of 10. Conwy performed best with its 5-year business survival rate of 53.6% and a large number of train stations, with 14.9 per 100,000 people.

The best local authority in Wales for download speeds is Merthyr Tydfil, just north of Cardiff, which recorded an incredibly fast median speed of 540.2 Mbps. Meanwhile, the nearby Welsh capital recorded the country’s highest GDP per capita at £40,950, as well as the most office properties in Wales, with 1,066.4 per 10,000 people.

Monmouthshire recorded the highest rate of people with level 4 qualifications at 33.1% Newport, also in the southeast of the country, has the best-insulated non-domestic property in Wales, with 60% receiving a positive EPC rating.

Ceredigion saw the highest 5-year business survival rate of 54.1%, while the highest employment rate of 78.7% was recorded in Wrexham. Lastly, the area with the most train stations per 100,000 people is Gwynedd, with 22.7.

1. Lisburn and Castlereagh Score /10: 9.24

Lisburn and Castlereagh is the best area of Northern Ireland for new businesses, with a score of 9.24 out of 10. In addition to providing easy access to Belfast, Lisburn and Castlereagh performed well across the board, including a fast median download speed of 124.6 Mbps, a 5-year business survival rate 52.6%, and almost 40% of people holding at least a level 4 qualification.

New businesses in the area should be encouraged that Lisburn and Castlereagh’s business survival rate is the second-highest in the country, only missing out on the top spot by 0.3%.

2. Mid Ulster Score /10: 7.04

Mid Ulster earned second place with a score of 7.04 out of 10, making it a promising location for prospective business owners. While Mid Ulster has one of the lowest rates of people with at least a level 4 qualification, it performed very well in other areas like its high GDP per capita, employment rate and 5-year business survival rate.

3. Newry, Mourne and Down Score /10: 6.82

Newry, Mourne and Down takes third place with a score of 6.82, narrowly beating out Belfast which followed closely with a score of 6.60. This area in the southeast of Northern Ireland recorded a very fast median download speed of 141.8 Mbps and a high employment rate of 65.5%.

The fastest internet download speed in Northern Ireland was recorded in Antrim and Newtownabbey at 204.8 Mbps, while the best 5-year business survival rate of 52.9% was seen in Mid Ulster.

Lisburn and Castlereagh came top both for its employment rate, which stands at 66.9%, and for having the most well-educated population, with 39.2% of people having at least a level 4 qualification.

Despite being Northern Ireland’s capital, Belfast did not crack the top three places for new businesses in 2025. However, the city did record the highest GDP per capita in the country at £49,821.

Methodology

We analysed local authorities in the UK across a range of factors to determine which areas are the best for new businesses in 2025. We split these local authorities by constituent country, as well as separating London boroughs from the rest of England.

We collected the following data for all UK local authorities:

• Median internet download speed (Mbps), sourced from thinkbroadband.
• 5-year business survival rate (%), calculated using ONS business demography data.
• Employment rate (%), sourced from ONS and NISRA.
• GDP per capita (£), also sourced from ONS.

Additionally, we looked at:

• The number of train stations per 100,000 people across local authorities in England, Scotland, Wales and London, using data from the Office of Rail and Road. London data includes Underground and Overground stations.
• The number of office sector properties per 100,000 people across local authorities in England, Wales and London, using data from the Valuation Office Agency.
• Non-domestic properties with positive Energy Efficiency Ratings (A+, A or B) across local authorities in England, Wales and London, sourced from the Ministry of Housing, Communities and Local Government
• The percentage of people with people with level 4 qualifications or higher across local authorities in England, Wales, Northern Ireland and London, sourced from ONS and the UK data service.
• The percentage of people who leave school with a level 6 qualification across local authorities in Scotland, sourced from the Scottish Government. Scotland uses a different set of education tiers, so the closest to level 4 in the rest of the UK was used.

We then combined these data points for all local authorities in each UK country, creating a separate score and ranking for each. This allowed us to reveal which local authorities in each UK country are best for starting a new business.

When normalising data per 100,000 people, we used population data from the ONS, National Records of Scotland and NISRA.