An Analysis of the UK’s Business Landscape: Best and Worst Locations for Businesses in the UK 2024

Introduction

The business environment in the UK is dynamic and diverse, with different regions providing different opportunities and difficulties for start-ups and well-established companies. This report examines the best and worst areas to do business in the country and ranks 141 unitary districts/authorities based on metrics that indicate business friendliness. 

The criteria used to rank these areas include new enterprise births, business growth rates, and survival rates, highlighting each region’s entrepreneurial spirit and economic vitality. Additionally, we consider Gross Value Added (GVA) per hour worked to assess productivity, alongside median gross monthly pay, rent, and rent-to-wage ratios to gauge residents’ economic well-being and affordability. Educational attainment, reflected by the percentage of the population with NVQ4+ qualifications, provides insight into the skill levels within the workforce. At the same time, life satisfaction scores offer a broader perspective on the quality of life in these areas.

This analysis, based on the latest data available from the Office for National Statistics (ONS) and the National Online Manpower Information System (NOMIS), offers a balanced and detailed view of the business landscape in 2024.

This report identifies the top- and bottom-performing areas, serving as a valuable tool for those looking to understand the factors contributing to a thriving business ecosystem in the UK.

Key Findings:

• Surrey tops the overall ranking with a score of 80, whereas Wiltshire comes in last with a score of 50.
• New Enterprise Births: Kent saw the most (8,170) new businesses opening in a year, while Rutland saw the fewest (165).
• Business Count Growth: The most significant increase in the number of businesses in the last 5 years occurred in Hackney, with a growth of 4.97%. Conversely, Central Bedfordshire experienced a decline of 3.92% during the same period.
• Business Survival Rate: In the last 6 years, Rutland had the best business survival rate (50%), and Luton had the worst (12.27%).
• Gross Value Added (GVA): Tower Hamlets has the highest GVA per hour (£67.60), while St. Helens has the lowest (£26.44).
• Median Gross Monthly Pay: Wandsworth offered the highest average wage (£3,607), and Blackpool offered the lowest (£1,764).
• Rent: Between April 2022 and March 2023, the average rent for all property categories was highest in Kensington and Chelsea, London (£2,500) and lowest (£495) in County Durham and Hartlepool, both in the North East.
• Rent-to-Wage Ratio: Kensington and Chelsea has the highest rent-to-wage ratio (81.01%), and Hartlepool has the lowest (22.94%).
• NVQ4+ Qualifications: Lambeth (75.5%) has the most people under the working age of 16–64 with NVQ4 or higher qualifications, while North East Lincolnshire (23.6%) has the fewest.
• Life Satisfaction: Bedford has the highest life satisfaction score (7.89), while Kensington and Chelsea have the lowest (7.18).
• Areas in the South East of England region appear multiple times among the top ten business destinations, including the top three. On the other hand, areas in the North West of England appear several times in the bottom 20.

Best and worst Locations for business in the UK 2024

20 Best Locations for Businesses in the UK 2024

1. Surrey

In the South East of England, Surrey stands out as the best area for business in the UK for 2024. Despite a slight decline in the number of companies (-0.26%) from 2018 to 2022, Surrey remains a hub for business activity, with a staggering 6,940 new enterprises launched in 2021. The county has a strong business survival rate of 44.77% over five years (2016-2021), coupled with an impressive Gross Value Added (GVA) of £46.36 per hour worked.

 Surrey’s workforce is highly educated, with 53.3% holding NVQ4+ qualifications. The average gross monthly income in the area is £2,757, which is higher than the national average. However, the high property rents, averaging £1,220 a month, push the rent-to-wage ratio to 44.25%, presenting challenges for cost management. Surrey's high quality of life, reflected in its overall life satisfaction score of 7.59, is a major draw for businesses and professionals.

2. Wokingham

Wokingham, another town in the southeast, ranks second on the list. Between 2018 and 2022, the area saw a modest 0.29% increase in business counts, with 940 new enterprises established in 2021. Businesses here have a survival rate of 46.15%, aided by a remarkably high GVA of £56.38 per hour worked.

Wokingham has a high average monthly pay of £2,960. And with the average property rent of £1,100, the rent-to-wage ratio is relatively balanced at 37.17%. The town’s workforce is well-qualified, as evidenced by the fact that 57% of residents have NVQ4+ qualifications. The area has a strong sense of well-being, with an average life satisfaction score of 7.47.

3. Hampshire

Hampshire, also located in the South East, is another prime location for business in the UK. The county experienced a slight decline (-0.22%) in the total number of businesses in recent years, yet it still welcomed one of the highest numbers (6,270) of new companies in 2021. The high business survival rate of 43.1% likely inspired confidence among new entrepreneurs. Hampshire’s economic productivity is reflected in its GVA of £42.94 per hour worked.

The average monthly salary here is £2,458, while the property rent is £950, resulting in a comfortable rent-to-wage ratio of 38.65%. The area is well-educated, with 40.3% of the working-age population holding NVQ4 or higher qualifications. Life satisfaction is notably high, with an average score of 7.71, making Hampshire a thriving environment for businesses and their employees.

4. Westminster

Westminster, in the heart of London, ranks fourth on the list. The businesses here are thriving, with a steady annual increase of 1.84% in the number of companies from 2018 to 2022. In 2021 alone, a remarkable 7,145 new businesses were established. Westminster has a high business survival rate of 46.43%, supported by an impressive GVA of £58.07 per hour worked, the highest among the top 20 areas on the list.

Westminster’s average monthly pay (£3,195) is among the highest in the UK. However, its second-highest property rent in the country, at £2,455, raises the rent-to-wage ratio to a whopping 76.84%. Despite the high costs, the area’s education level is excellent, with an impressive 68.9% holding an NVQ4+ qualification. Meanwhile, the life satisfaction score of 7.38 indicates a balanced work-life environment.

5. Oxfordshire

In the South East, Oxfordshire ranks fifth for business in the UK in 2024. The area saw a slight growth of 0.64% in business counts between 2018 and 2022. A total of 3,330 new companies were launched in 2021, thanks to a strong business survival rate of 46.06%. The county’s productivity is reflected in its GVA of £37.05 per hour worked.

The average monthly wage here is £2,592, with property rent at £1,160, resulting in a relatively high rent-to-wage ratio of 44.75%. The county has an educated population, with 55.6% having NVQ4 or higher qualifications. Oxfordshire also has a decent life satisfaction score of 7.75, making it an attractive environment for businesses looking to thrive in a well-rounded, productive setting.

6. Kent

In the South East of England, Kent ranks sixth on the list. The county is a major business center, boasting the highest number of new company formations (8,170) in 2021 and a consistent increase of 1.16% in the business count from 2018 to 2022. Although the business survival rate is relatively lower at 40.57%, Kent's economic productivity remains robust, with a GVA of £36.37 per hour worked.

The average monthly pay here is £2,399. With the rent at £900, the rent-to-wage ratio is 37.52%, indicating a relatively affordable cost of living. Notably, the education levels are lower, with 38.7% of the population holding NVQ4 or above qualifications. The life satisfaction score in Kent is, however, a decent 7.6.

7. Suffolk

Suffolk, located in the East of England, ranks seventh. The county witnessed a steady increase of 0.94% in its business count between 2018 and 2022, along with the establishment of 3,445 new enterprises in 2021. Suffolk has an impressive business survival rate of 48.34%, among the highest in the country. The area has a moderate productivity level, reflected in its GVA of £34.82 per hour worked.

With an average monthly salary of £2,158 and rent of £795, Suffolk is an affordable place to live and work, with a rent-to-wage ratio of 36.85%. Education levels here are lower than in Kent, with 37% of residents having NVQ4+ qualifications. Remarkably, life satisfaction in Suffolk is the second highest in the country, with an average score of 7.83.

8. Essex

Essex is another thriving area in the East of England. The county experienced a growth of 0.76% in its business count between 2018 and 2022 while also witnessing the launch of the second-highest number (8,050) of new enterprises in 2021. The business survival rate in Essex is 42.92%, with a GVA of £34.83 per hour worked, indicating moderate economic productivity.

With an average monthly pay of £2,388 and a rent of £975, the rent-to-wage ratio is 40.84%. The educational level here is even lower, with 35.2% of the population holding NVQ4+ qualifications. However, like Suffolk, Essex also enjoys a high life satisfaction score of 7.68.

9. Rutland

Rutland, the smallest historic county in England, ranks ninth for business in the UK in 2024. Although ranked among the top 10, the county witnessed the lowest number of new enterprises (165) established in 2021 and a modest growth of 0.81% in the business count between 2018 and 2022. However, the county boasts the highest business survival rate of 50%. Then again, its GVA per hour worked (£30.35) is the lowest among the top 20 areas on the list. With an average monthly salary of £2,600 and a property rent of £775, the rent-to-wage ratio stands at a favourable 29.81%.

This makes it one of the most affordable locations among the top 20. The country’s education levels are moderate, with 43.5% of residents having NVQ4+ qualifications. Compared to Essex, Rutland has a higher life satisfaction score of 7.76, enhancing its appeal for business and quality of life.

10. Windsor and Maidenhead

Windsor and Maidenhead, located in the South East, ranks tenth for business in the UK in 2024. The area experienced a slight decline in the overall number of businesses (-0.15%) in recent years. Yet, it welcomed 1,055 new companies in 2021, likely because of the decent business survival rate of 42.23%. So it’s no surprise that Windsor and Maidenhead’s productivity is also high, with a GVA of £53.16 per hour worked.

The average monthly income in this area is £2,836, but the property rent is considerably high at £1,300. This pushes the rent-to-wage ratio up to 45.84%, reflecting the premium cost of living here. The area is highly educated, with 58.7% of the population holding NVQ4 or above qualifications. With a life satisfaction score of 7.65, Windsor and Maidenhead offer a thriving business environment with a high quality of life.

11. Lancashire

Lancashire ranks eleventh on the list in the North West of England. The county saw business count growth of 0.82% from 2018 to 2022 and created 5,870 new companies in 2021. The business survival rate in Lancashire is 41.96%, with a GVA of £32.6 per hour worked. With one of the lowest rents at £575 and an average monthly salary of £2,110, the region has one of the lowest rent-to-wage ratios at 27.25%, making it an affordable place for both employers and workers.

Education levels are, however, low, with 35.6% of the population holding NVQ4+ qualifications. Lancashire boasts a life satisfaction score of 7.62, making it an attractive place for business with a balanced cost of living and quality of life.

12. North Yorkshire

North Yorkshire, located in the Yorkshire and Humber region, with a modest growth of 0.32% in business counts between 2018 and 2022, saw 2,725 new enterprises in 2021. The business survival rate is at 45.44%, aided by a GVA of £31.9 per hour worked. The average monthly wage is £2,143, and the rent is £675, for a rent-to-wage ratio of 31.5%. Around 43.5% of the population has NVQ4+ qualifications. Notably, the county has the third-highest life satisfaction score of 7.78.

13. Warwickshire

Warwickshire, in the West Midlands, saw 3,535 new enterprises in 2021, though it experienced a slight decline in business counts over recent years. The business survival rate here is 43.1%, with a GVA of £37.24 per hour worked. In Warwickshire, the average monthly salary is £2,504, and the rent is £800, for a rent-to-wage ratio of 31.95%. Some 43.9% of the population have NVQ4 or higher qualifications. The county enjoys a life satisfaction score of 7.62.

14. Leicestershire

The East Midlands region of Leicestershire saw 3,275 new companies open in 2021, with a 0.23% increase in the number of businesses from 2018 to 2022. The business survival rate in Leicestershire (42.13%) is supported by a GVA of £33.83 per hour worked.

The average monthly income in this area is £2,322, and the rent is quite affordable at £695. This results in a favourable rent-to-wage ratio of 29.93%. The county’s workforce is well-educated, with 40.2% holding NVQ4+ qualifications. Life satisfaction in Leicestershire is also high, with a score of 7.77.

15. Camden

Camden, a central London borough, ranks fifteenth among the best areas for business in the UK in 2024. Camden is a thriving business hub, with 5,600 new companies formed in 2021 and the highest annual growth in business counts among the top 20 areas, 2.95%, from 2018 to 2022. Camden’s business survival rate is 40.63%, supported by a GVA of £51.82 per hour worked.

Despite a decent average monthly income of £2,989, the rent (£1,950) is among the steepest here. This results in a rent-to-wage ratio of 65.24%, highlighting the elevated cost of living. Camden’s population is highly educated, with 66.4% holding NVQ4 or above qualifications. Despite the high costs, the area maintains a decent life satisfaction score of 7.35, making it a desirable location for businesses seeking a dynamic and well-educated workforce.

16. Richmond upon Thames

Richmond upon Thames, a leafy borough in London, saw 1,585 new business establishments in 2021. However, over the previous few years, the number of businesses in the borough has slightly decreased (-0.45%). The borough has a strong business survival rate of 45.38% and a highly productive GVA of £50.63 per hour worked. The average monthly pay (£3,071) and rent (£1,625) in the area are among the highest.

Consequently, the rent-to-wage ratio (52.91%) reflects the premium cost of living. However, the borough boasts a highly educated population, with 70% holding NVQ4 or above qualifications. Besides, Richmond also enjoys a life satisfaction score of 7.47.

17. Derbyshire

In the East Midlands, Derbyshire witnessed a modest increase of 0.67% in its business count between 2018 and 2022, along with the establishment of 3,335 new enterprises in 2021. The business survival rate in Derbyshire is 43.71%, with a GVA of £34.41 per hour worked. The average monthly salary is £2,203, and the rent is £636, with a rent-to-wage ratio of 28.87%, making this an affordable place to live and work. Here, education levels are low, with 37.8% of the population holding NVQ4+ qualifications, and life satisfaction is high, with an average score of 7.69.

18. York

York, a historic city in Yorkshire and the Humber recorded 800 new enterprises in 2021 and a business count growth of 0.47% from 2018 to 2022. York has a business survival rate of 47.9%, supported by a GVA of £35.73 per hour worked. The average monthly wage is £2,188, and the rent is £850, for a rent-to-wage ratio of 38.86%. The city’s population is well-educated, with 59.4% holding NVQ4+. York also enjoys a high life satisfaction score of 7.65.

19. Bedford

Bedford, located in the East of England, saw 960 new enterprises in 2021 and a business count growth of 1.2% from 2018 to 2022. The business survival rate in Bedford is 40.1%, with a GVA of £31.74 per hour worked. The average monthly pay is £2,490, and rent is the same as in York (£850), with a rent-to-wage ratio of 34.14%, making it a balanced location regarding living costs and earnings. Around 49.5% of the population has NVQ4+ qualifications. Incidentally, Bedford has the highest life satisfaction score of 7.89.

20. Gloucestershire

In the South West of England, Gloucestershire rounds out the top 20 areas for business in the UK in 2024. The county saw 2,980 new enterprise births in 2021 and a modest business count growth of 0.46% from 2018 to 2022. Despite being ranked 20th, the business survival rate (48.12%) in Gloucestershire is one of the highest on the list, which is complemented by a GVA of £36.94 per hour worked. The county offers a balanced living environment, with an average monthly income of £2,349 and a rent of £815. This results in a comfortable rent-to-wage ratio of 34.7%. Education levels are decent, with 42.9% of the population holding NVQ4 or higher qualifications. Gloucestershire also enjoys a life satisfaction score of 7.51.

20 Worst Areas for Businesses in the UK 2024

1. Wiltshire

Wiltshire, located in the South West of England, ranks as the worst area for business in the UK in 2024. The county saw a decent number of new enterprises (1,980) in 2021, but unfortunately, it experienced the country’s second-biggest fall (2.78%) in the overall number of businesses between 2018 and 2022. Meanwhile, its third-lowest business survival rate, 14.39%, hurts the region’s economic stability. Wiltshire's productivity, measured by Gross Value Added (GVA), is £31.54 per hour worked.

The average monthly pay (£2,292), with property rent at £825, puts the rent-to-wage ratio at 36%, suggesting a moderate cost of living. The population's educational level is relatively high, with 45.6% having NVQ4 or higher qualifications. Meanwhile, despite a life satisfaction score of 7.44, the area’s poor business performance and weak economic indicators earn Wiltshire the lowest overall score of 55.

2. Luton

Luton, in the East of England, ranks second from bottom. The region saw the third-highest drop (-2.05%) in business counts from 2018 to 2022, even though it saw a respectable number (1,705) of new enterprises in 2021. The business survival rate is critically low at 12.27%, while the GVA per hour worked (£35.96) is slightly higher.

The average monthly salary is £2,170, and the rent is £850, resulting in a rent-to-wage ratio of 39.17%, indicating a higher cost of living relative to earnings. Besides, only 37.1% of residents here have NVQ4 or higher qualifications. Luton has a relatively high life satisfaction score of 7.67, but its poor business growth and survival rates make it a challenging environment for businesses.

3. Central Bedfordshire

Central Bedfordshire, also in the East of England, is in third place from the bottom. Although 1,450 new enterprises opened here in 2021, the county experienced the sharpest decline in business counts by 3.92% from 2018 to 2022. Moreover, the business survival rate is just 14.06%, making it difficult for new ventures to succeed.

The GVA per hour worked is £34.02, which is also somewhat higher than Luton’s. The average monthly wage is relatively high, at £2,739. With the rent at £910, the rent-to-wage ratio comes to 33.22%, indicating balanced costs. The county’s educational level is moderate, with 41.7% of the population holding NVQ4+ qualifications. The area has a good life satisfaction score of 7.72, but its poor business environment detracts from its overall attractiveness.

4. Oldham

Oldham, located in the North West of England, is positioned fourth from the bottom. The area saw 1,070 new enterprises in 2021 and a small increase in business counts by 0.49% from 2018 to 2022. However, the business survival rate is only 25.26%, and the GVA per hour worked is £30.75, indicating lower economic stability and productivity.

The average monthly income in this area is £2,146, and the rent is quite affordable at £650. This results in a favourable rent-to-wage ratio of 30.29%. The educational level is poor, with only 29.6% of the population having NVQ4+. Life satisfaction in Oldham is 7.51, but the area’s poor business survival rate and poor economic condition make it challenging for businesses to thrive.

5. Bury

Bury, also in the North West of England, ranks fifth-worst for business in the UK in 2024. The area recorded 1,645 new enterprise births in 2021 and a slight increase in business counts by 0.29% from 2018 to 2022. However, the business survival rate is very low at 21.48%, and the GVA per hour worked is £30.55, which points to a poor economic condition. The county offers a balanced living environment, with an average monthly income of £2,388 and a rent of £700.

This results in a comfortable rent-to-wage ratio of 29.32%. The educational level is moderate, with 42.6% of the population holding NVQ4 or higher qualifications. Despite a life satisfaction score of 7.44, Bury's weak business environment, marked by low survival rates and productivity, hinders its attractiveness for entrepreneurs.

6. Kensington and Chelsea

Kensington and Chelsea, a borough in London, ranks sixth from the bottom. The area recorded 1,910 new enterprises in 2021 and a slight growth of 0.32% in business counts between 2018 and 2022. The business survival rate (41.34%) and the GVA per hour worked (£43.29), are the highest among the bottom 20 areas. Moreover, the average monthly pay here is the fifth highest in the country at £3,086.

However, the rent, at £2,500, is the steepest in the UK, which pushes the rent-to-wage ratio up to 81.01%, the highest in the country, reflecting the substantial cost of living. Meanwhile, 63.9% of working-age people are highly educated and hold NVQ4 or higher qualifications. However, Kensington and Chelsea have the lowest life satisfaction score of 7.18 due to the high costs and modest business growth.

7. Blackpool

Blackpool, a seaside town in the North West of England, is seventh from the bottom. The area saw only 540 new enterprises in 2021, with a slight decline in business counts by 0.08% from 2018 to 2022. The business survival rate is relatively low at 38.79%, but the GVA per hour worked is just £28.59, reflecting lower economic productivity.

Moreover, the average monthly salary (£1,764) is the lowest in the country. However, since the rent, at £550, is also one of the cheapest in the UK, residents here enjoy an affordable rent-to-wage ratio of 31.18%. The education level is quite poor here, with only 28.6% of the population having NVQ4+ qualifications. Blackpool’s life satisfaction score is 7.44.

8. Doncaster

Doncaster, located in Yorkshire, and the Humber are placed eighth from the bottom. The area saw a modest growth of 0.88% in business counts from 2018 to 2022, including 1,735 new enterprises opening in 2021. The business survival rate is 30.71%, with a GVA per hour worked of £28.43, indicating lower economic productivity. The average monthly wage is £2,140, and the rent is £545, so the rent-to-wage ratio is 25.47%, which is quite reasonable. However, only 27.2% of the population has NVQ4+ qualifications. Doncaster’s life satisfaction score is 7.43.

9. Redcar and Cleveland

Redcar and Cleveland, in the North East of England, are positioned ninth from the bottom. The area saw the third-lowest number (400) of new enterprises in 2021 and experienced a slight decline in business counts by 0.33% from 2018 to 2022. The business survival rate is relatively low at 35.71%, but the GVA per hour worked is just £28.14, the third lowest in the country.

The average monthly pay of £1,908 is also the third lowest. The rent of £525 brings the rent-to-wage ratio to 27.51%, making it an affordable place to live. The educational level is lower, with 33.4% of the population holding NVQ4+ qualifications. Redcar and Cleveland’s life satisfaction score is a moderate 7.5.

10. Sunderland

Sunderland, another area in the North East of England, ranks tenth-worst for business in the UK in 2024. The area recorded 1,115 new enterprises in 2021 and a modest growth of 0.81% in business counts from 2018 to 2022. The business survival rate is relatively lower at 36.78%, and the GVA per hour worked is £38.24, indicating decent economic productivity.

 The median gross monthly pay is £1,997. With a rent of £550, the rent-to-wage ratio is 27.54%, reflecting an affordable cost of living. However, the educational level here is the second-lowest in the country, with only 24.7% of the population holding NVQ4 or higher qualifications. Sunderland’s life satisfaction score is also the second-lowest, at 7.23.

11. Sandwell

Sandwell, located in the West Midlands, is eleventh from the bottom. The area saw 1,760 new enterprises opening in 2021 and experienced a notable growth of 2.15% in business counts from 2018 to 2022. Despite this growth, the business survival rate is on the lower side at 36.88%, with a GVA per hour worked of £32.76, reflecting moderate economic productivity. The average monthly salary in Sandwell is £2,035, and the rent is £725. This puts the rent-to-wage ratio at 35.62%, indicating a balanced cost of living. The educational level is low, with just 27.2% of the population having NVQ4+ qualifications. Sandwell’s life satisfaction score of 7.29 is among the lowest.

12. Hartlepool

In the northeast of England, Hartlepool is located twelfth from the bottom. The area saw a decline in business counts by 1.34% from 2018 to 2022, with only 275 new enterprises opening in 2021. The business survival rate (36.25%) and the GVA per hour worked (£31.85) are relatively low.

The average monthly wage is £2,158. Because the rent (£495) here is the weakest in the country, the rent-to-wage ratio is also low (22.94%). The education level is lower, with 30.2% of the population holding NVQ4+ qualifications. Hartlepool has a life satisfaction score of 7.42.

13. Southwark

Southwark, a borough in London, is positioned thirteenth from the bottom. The area saw 2,825 new enterprises open in 2021 and experienced a modest growth of 0.35% in business counts from 2018 to 2022. The business survival rate is relatively low at 32.28%, and the GVA per hour worked is relatively high at £42.43. The average monthly pay (£2,904) is one of the highest among the bottom 20 areas.

Meanwhile, the rent (£1,800) is among the steepest in the country, resulting in a rent-to-wage ratio of 61.98%, indicating a high cost of living. The borough is well-educated, with 57.2% of residents having NVQ4 or higher qualifications. However, Southwark has a low life satisfaction score of 7.32.

14. Rochdale

In the North West of England, Rochdale ranks fourteenth from the bottom. The area saw 1,075 new ventures in 2021 and experienced a growth of 1.60% in business counts from 2018 to 2022. The business survival rate (33.04%) and GVA per hour worked (£30.17) are lower.

The average monthly wage is £2,045, while the rent is £595. This brings the rent-to-wage ratio to 29.09%, indicating an affordable cost of living. The education level here is quite poor, with 31.3% holding NVQ4+ qualifications. Rochdale’s life satisfaction score is 7.42.

15. Halton

In the North West of England, Halton ranks fifteenth-worst for business in the UK in 2024. The area saw 545 new companies open in 2021 and experienced a slight decline in business counts by 0.08% from 2018 to 2022. The business survival rate is relatively low at 34.40%, but the GVA per hour worked is £40.56, indicating moderate economic productivity.

The average monthly income of £2,108, with the rent at £575, puts the rent-to-wage ratio at 27.28%, reflecting a reasonably affordable cost of living. Residents here have poor education, with 30.3% holding NVQ4 or higher qualifications. Halton’s life satisfaction score of 7.34 is on the lower side.

16. Manchester

Manchester, a major city in the North West, is sixteenth from the bottom. The city saw an impressive 4,245 new companies launch in 2021 and experienced a modest growth of 0.88% in business counts from 2018 to 2022. However, the business survival rate here is weak (26.36%), and the GVA per hour worked (£36.04) is moderate.

The average monthly pay of £2,081 and the rent of £900 bring the rent-to-wage ratio to 43.24%, indicating a higher cost of living. The educational level is relatively high, with 45.1% of the population holding NVQ4+ qualifications. Manchester has a life satisfaction score of 7.45.

17. North East Lincolnshire

In Yorkshire and The Humber, North East Lincolnshire is placed seventeenth from the bottom. The area saw 580 new enterprises in 2021 and experienced a modest growth of 0.54% in business counts from 2018 to 2022. The business survival rate is 38.46%, with a GVA per hour worked of £29.22. The rent-to-wage ratio is 24.14%, with the average monthly pay at £2,133 and rent at £515. Only 23.6% of the population has NVQ4+ qualifications here. The life satisfaction score of 7.38 is also in North East Lincolnshire.

18. Knowsley

Knowsley, located in the North West of England, is positioned eighteenth from the bottom. The area saw 560 new ventures in 2021 and experienced a modest growth of 0.54% in business counts from 2018 to 2022. The business survival rate is 36.11%, with a GVA per hour worked of £33.41, reflecting moderate economic productivity. The rent-to-wage ratio is 28.68%, with the average monthly pay at £2,249 and rent at £645. The educational level is low, with 31.2% of the population holding NVQ4+ qualifications. Knowsley’s life satisfaction score of 7.36 is on the lower side.

19. Nottingham

Nottingham, in the East Midlands, is nineteenth from the bottom. The city saw 1,350 new enterprise births in 2021 and experienced a decent growth of 1.13% in business counts from 2018 to 2022. The business survival rate is 40.21%, with a GVA per hour worked of £32.77. The average monthly pay (£1,875) is the third-lowest in the country.

With the rent at £725, the rent-to-wage ratio is 38.66%. The educational level is decent, with 41.9% of the population holding NVQ4 or higher qualifications. Nottingham’s life satisfaction score of 7.25 is among the lowest.

20. Walsall

In the West Midlands, Walsall ranks twentieth-worst for business in the UK in 2024. The area saw a decent number (1,535) of new companies open in 2021 and experienced a growth of 1.67% in business counts from 2018 to 2022. The business survival rate is 37.10%, with a GVA per hour worked of £28.66, reflecting lower economic productivity. The rent-to-wage ratio here is 32.48%, with the average monthly income at £2,078 and rent at £675. The area is not well-educated, with just 26.9% of residents having NVQ4 or higher qualifications. Like most bottom areas, Walsall’s life satisfaction score is also a low 7.42.

Conclusion

The analysis of the best and worst areas for business in the UK in 2024 reveals drastic disparities in business environments across different regions. The top-performing areas, predominantly in the South East and East of England, benefit from high productivity levels, strong business survival rates, and an educated workforce. These regions offer a balanced quality of life, with higher life satisfaction scores and relatively affordable living costs, making them attractive for both businesses and employees.

Surrey, Wokingham, and Hampshire stand out as prime business locations, thanks to their strong economic indicators and supportive environments for enterprise growth. On the other hand, areas like Wiltshire, Luton, and Central Bedfordshire face significant challenges, with declining business counts, low survival rates, and economic constraints that hinder business success.

This report highlights the importance of regional factors, including education, cost of living, and economic productivity, in shaping the business landscape.

Understanding these dynamics is crucial for policymakers and entrepreneurs to foster a thriving business ecosystem in the UK. While some areas excel at creating a conducive environment for business, others require targeted interventions to improve their economic prospects and attract new ventures.

Methodology

In our analysis, we examined 141 unitary districts/authorities in the UK based on a range of business-related criteria to rank their overall business-friendliness. Each criterion was scored from 40 to 100 to ensure a comprehensive and balanced assessment. The scores were normalized to a common range while maintaining their relative differences.

Data Sources:

All data was sourced from the Office for National Statistics (ONS) and the National Online Manpower Information System (NOMIS). Below are the features used in our analysis, along with a brief description of each:

1. New Enterprise Births in 2021: The count of new enterprise births in each unitary district/authority, sourced from the Office for National Statistics.
2. Percentage of Year-on-Year Business Count Growth (2018-2022): This metric reflects the average year-on-year growth rate in the number of businesses over the last five years, sourced from NOMIS (National Online Manpower Information System.
3. Business Survival Rate (Start 2016, End 2021): The percentage of businesses that started in 2016 and were still active in 2021, according to Office for National Statistics data.
4. Average of Gross Value Added (GVA, Pounds) per Hour Worked: This represents the average Gross Value Added per hour worked over the latest available five years (2016-2020), sourced from NOMIS (National Online Manpower Information System).
5. Median Gross Monthly Pay (Pounds), 2022: The median monthly wage for each unitary district/authority in 2022, reflecting the income levels of residents. Weekly wage data was sourced from the Office for National Statistics and converted to monthly pay by multiplying by 4.33.
6. All Categories Median Rent, April 22 - March 23: The median rent for all property categories over the specified period, sourced from the Office for National Statistics.
7. Rent to Wage Ratio: The rent to wage ratio for each state in 2022 was calculated by dividing the median monthly rental value by the median monthly pay. This ratio provides insights into the affordability of rental properties relative to residents' income levels.
8. Percentage with NVQ4+ (aged 16-64): NVQ4+ qualifications refer to vocational qualifications in the United Kingdom that are at level 4 or above on the National Vocational Qualification (NVQ) framework. These qualifications are equivalent to undergraduate-level study, and are designed to provide learners with the knowledge and skills necessary for a particular profession or industry.
   As reported by the NOMIS (National Online Manpower Information System) in 1 year survey ending in December of 2021, the percentage of population who are NVQ4+ qualified.
9. Average Life Satisfaction Score (Mar 2021 - Mar 2022): As surveyed by the Office for National Statistics, populations average score for life satisfaction score living in the county/unitary district. The survey contains data through April 2021 to March 2022.

Methodology: Further Details

How the weights are distributed

Each criterion was assigned a weight reflecting its importance in assessing the business-friendliness of an area. The weights were applied as follows:

Weight Distribution

For this analysis, each health condition has been assigned equal weights, considering the need to balance the overall health impact assessment:

Calculation Methodology

1. Data Normalization: Each criterion's data was normalized to a scale of 40-100 using the MinMaxScaler from the scikit-learn library. This step ensures that all criteria are comparable and maintain their relative differences, preventing any single criterion from disproportionately influencing the final score.

2. Weight Application: After normalization, the predefined weights were applied to each criterion. This step involved multiplying each normalized value by its respective weight to reflect its importance in the overall assessment.

3. Score Calculation: We calculated a composite score for each SA4 area by summing the weighted scores of all criteria. This composite score represents the overall health status for each area.

4. Final Score Normalization: TTo present the scores in a more realistic range, the composite scores were further normalized to a scale of 55-80 using the MinMaxScaler. This ensures that the final scores are easily interpreted and compared across areas.

5. Ranking: The SA4 areas were ranked based on their final scores, with the highest score indicating the healthiest area. This ranking provides a clear and straightforward comparison of healthiness levels across all SA4 areas.