LIVERPOOL NAMED THE UK'S BEST CITY FOR BUSINESS OWNERS AS LONDON REMAINS THE MOST EXPENSIVE - The London Business Journal
Liverpool has been named the UK's best city for business owners in new Co-operative Bank research, while London remains the country's most expensive location for retail and workspace costs.
New research fromThe Co-operative Bankhas identified Liverpool as the UK’s best city for business owners, combining affordable operating costs, flexible workspace, shorter commutes and strong wellbeing, while London continues to be the country’s most expensive location in which to run a business. Liverpool has emerged as the UK’s leading city for business owners, according to new research by The Co-operative Bank, which found that a combination of lower operating costs, accessible co-working space, shorter commuting times and high levels of resident wellbeing makes the city particularly attractive for entrepreneurs. The research comes as business costs remain under intense scrutiny following the Government’s latest changes to business rates, which reduced costs for pubs and music venues while many retailers continue to await clarity on how future reforms will affect them. The Co-operative Bank analysed a range of factors that influence business owner wellbeing, including retail rental costs, co-working availability, commuting times, opportunities for networking and social activities, and city-wide happiness scores. Liverpool topped the national rankings thanks to its balanced mix of affordability and quality of life. Business owners in the city benefit from an average commute of just 28 minutes, annual co-working costs of around £1,484 and retail rents averaging £14 per square foot. The city also offers 26 co-working spaces and 149 activities and games venues, helping entrepreneurs build both professional and personal networks while maintaining a healthy work-life balance. Nottingham ranked second overall, supported by competitive workspace costs, manageable commuting times and a strong wellbeing score, while Exeter completed the top three, offering entrepreneurs a supportive environment in a smaller city with good quality of life. Although London remains the UK’s commercial powerhouse, it also continues to be the country’s most expensive place to operate a business. Retail rents average £31 per square foot annually, more than four times higher than Southend-on-Sea, which recorded the lowest retail rents at just £7 per square foot. London also has the highest average annual co-working costs, at approximately £3,960. Brighton ranked as the second most expensive location for retailers, with average retail rents of £29 per square foot, followed by Manchester and Cambridge, reflecting continued demand for commercial space in those markets. At the opposite end of the scale, Southend-on-Sea offers some of the lowest operating costs for business owners, with affordable retail premises and comparatively low co-working costs. Bradford, Liverpool, Aberdeen and Leicester also featured among the UK’s most affordable locations for commercial space, providing entrepreneurs with greater flexibility to invest in growth rather than overheads. The findings also highlight the growing importance of business owner wellbeing. Research cited by The Co-operative Bank shows that more than half of small business owners have experienced poor mental health during the past year, underlining the pressures associated with managing staff, cash flow and business growth. Lisa Galley, Head of Business Banking Products at The Co-operative Bank, said: “Running a business is rewarding, but the pressure is sometimes very real, particularly when you’re balancing cash flow, people and growth decisions all at the same time. Many owners already have strong routines in place, but knowing that there is support to lean on – whether that’s trusted partners, additional resources, or external expertise – can make a meaningful difference when capacity is stretched. “Maintaining a clear view of your financial position remains critical. Understanding cash flow, upcoming commitments and potential risks helps you stay in control and act with confidence. Used thoughtfully, options likelendingorcreditcan provide flexibility at the right moments, whether to smooth short-term pressures or support investment. “Ultimately, withstanding pressure is about having the right tools, support, and visibility to make informed decisions and keep your business moving forward with confidence. ”As businesses continue to navigate rising operating costs and economic uncertainty, the research suggests that location remains a significant factor in determining both commercial success and the wellbeing of the entrepreneurs behind Britain’s growing SME sector.