It’s been the centre of global operations for centuries, whether that was as an empire or financial capital. But is London losing its edge to other major UK cities?
As London business owners we’re expectedly passionate about our home. Not only is it the authors home, but also the home of our many business ventures and has been for over a decade now.
However we’re not delusional and have noticed in recent years that the UK is changing in terms of the way we do business. Obviously, the digital revolution has had a major impact however that’s a good enough reason for the change we’re seeing.
More and more business owners and start-ups are selecting other UK cities to base their operations from. And there are a number of obvious reasons that we’ve identified, and even been tempted by:
- Cost – Start-ups especially, are strapped for cash. So why set-up in an area of the UK with the highest cost of living? Not only is living here expensive, but business rates, office rental and average wages add up to a huge monthly bill. Even for more established businesses, London is getting too expensive.
- Sentiment – In past years having a London business address was seen as a massive sign of authority and even a necessity for some industries. But as the world has changed with the internet and a generally more relaxed sentiment, people are finally realising that you can find great businesses outside of London. And that just because a business has a London address/office, it does not make it a market leading business.
- Creativity – Believe it or not, London is not the most inspirational city out there. Cities like Manchester and Bristol have seen huge growth in the creative sectors, as less pretentious and more relaxed areas seem to bring out the better creatives. But once again, cost plays a big part in this. Read about one of our London creative agencies here
- Tech Companies – Now this might not seem like an obvious reason as to why London is losing it’s edge. But ever since the Tech boom we’ve entered recently, there have been a lot more tech businesses select other UK cities as their hubs. Once again Manchester and Bristol being hot spots for tech. This pivot away from London for tech businesses removes a lot of the prestige that comes with having big business within the city as tech is the largest growth sector right now.
Asides from this, there is some hope for London business, it’s not all doom and gloom.
London does still seem to have a stronghold over bigger business, like finance, and Fintech which are both large sectors that the capital can keep hold of.
As London business owners we’re worried about the capital but can see the downfalls that might lead to it’s demise as the business hub of the UK. Cost, lifestyle and competition could be the straws that break the UK camels’ back.