Four Midlands cities have been ranked among the top ten most affordable places in the UK to run a small business, according to a major new report that compares operating costs across the country.
The UK Business Affordability Index 2025, published by BusinessPrices.co.uk, assessed the cost of doing business in 30 of the UK’s largest cities. It considered five essential categories of spending for small and medium-sized enterprises: office rent, energy bills, insurance, broadband, and local business rates.
The results show a strong performance from the Midlands, with Stoke-on-Trent (5th), Coventry (8th), Derby (9th) and Leicester (10th) all securing spots in the national top ten for affordability.
Regional competitiveness driving business resilience
Each of these cities offers a competitive cost structure for SMEs. Stoke-on-Trent, for example, benefits from low property and broadband costs, while Coventry scored particularly well on energy and business rates. Derby and Leicester also showed strong all-round affordability, making them attractive hubs for entrepreneurs, retailers, and service-based firms.
The findings come at a time when cost pressures remain high for many SMEs. According to the report, businesses in the most affordable Midlands cities could save thousands of pounds per year compared to those based in locations like London, Manchester, or Reading.
A shift in the national cost map
The 2025 index from BusinessPrices.co.uk reveals a noticeable shift in the UK’s business cost landscape. While London remains a magnet for investment and talent, its high overheads see it rank 30th—the most expensive city in the report. In contrast, smaller regional centres like those in the Midlands are emerging as cost-efficient, sustainable bases for business growth.
Business owners increasingly looking for affordable office space, stable operating costs, and access to talent may find these Midlands cities offer a compelling balance of value and opportunity.