Relocating to the United Kingdom to start or expand a business is a bold strategic move. Despite global economic shifts, the UK remains a top-tier destination for foreign investment, innovation, and entrepreneurship. However, for an international entrepreneur, the challenge isn’t just navigating visas and taxes—it is choosing the right location.
While London is the default answer for many, the reality is more nuanced. High operational costs in the capital have driven a massive wave of innovation into regional hubs. Finding the best city for business in the UK as an expat depends entirely on your industry, budget, and desired lifestyle.
This guide explores the top UK contenders, weighing the pros and cons for expatriate entrepreneurs.
Why Location Matters for Expat Entrepreneurs
Before diving into specific cities, it is crucial to understand what makes a UK city “business-friendly” for someone coming from abroad. The UK is geographically small but economically diverse.
1. Connectivity and Global Access
As an expat, you likely need easy access to international airports to visit home or meet global clients. You also need reliable rail links to move goods or meet partners across the country.
2. Access to Talent
Does the city have reputable universities? A steady stream of graduates is essential for scaling a startup. Cities with high retention rates of graduates are often the most dynamic business hubs.
3. Cost of Living vs. Quality of Life
Burn rate is the enemy of any new business. While London offers the highest potential for funding, cities like Manchester or Leeds allow you to extend your runway significantly due to lower rent and overheads.
London: The Global Heavyweight
It is impossible to discuss UK business without starting with the capital. London is one of the world’s two recognized “Alpha++” cities (alongside New York). For many, it is undeniably the best city for business in the UK as an expat due to sheer volume of opportunity.
The Pros of Starting in London
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Access to Capital: The vast majority of Venture Capital (VC) money in the UK is concentrated in London. If you are looking for Series A funding or angel investors, this is where they live.
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Diversity: London is hyper-diverse. As an expat, you will never feel out of place. The cultural melting pot also means you can easily find staff with diverse language skills and cultural competencies.
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Ecosystem: From FinTech in Canary Wharf to creative agencies in Shoreditch, every industry has a dedicated “cluster” here.
The Cons
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Cost: Office space in London is among the most expensive in the world. Residential rent is also incredibly high, which puts pressure on the salaries you need to pay your staff.
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Competition: You are competing with the best in the world. It can be harder to stand out here than in a regional city.
Best For: FinTech, Legal Services, Headquarters of Global Operations, and High-Growth Tech Startups.
Manchester: The Northern Powerhouse
If you ask a growing number of entrepreneurs what the best city for business in the UK as an expat is, they won’t say London—they will say Manchester. Often referred to as the “capital of the North,” Manchester has undergone a massive transformation over the last two decades.
Why Expats Love Manchester
Manchester has a gritty, ambitious, and collaborative spirit. It is the birthplace of the industrial revolution and is now reinventing itself as a digital and media hub.
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MediaCityUK: Home to the BBC and ITV, Salford Quays (Greater Manchester) is a massive hub for media, digital, and creative industries.
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Tech Growth: Manchester has a unicorn factory reputation. It is home to eCommerce giants (like The Hut Group and Boohoo) and a thriving cyber-security sector.
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University Talent: With the University of Manchester and Manchester Metropolitan University, the city produces thousands of skilled graduates annually who are increasingly choosing to stay in the North rather than move to London.
The “North-Shoring” Trend
Many businesses are moving operations from London to Manchester (“North-shoring”) to cut costs without sacrificing quality. For an expat, this means you can access top-tier legal and financial services at a fraction of London prices.
Best For: eCommerce, Media, Digital Marketing, and Cyber Security.
Birmingham: The Connected Central Hub
Birmingham is the UK’s second-largest city and is currently enjoying a massive infrastructure boom. Located in the West Midlands, it is historically the manufacturing engine of Britain, but its service sector is rapidly catching up.
Strategic Advantage: Connectivity
Birmingham is at the heart of the UK’s transport network.
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HS2 (High Speed 2): The upcoming high-speed rail network will cut travel time to London significantly, effectively turning Birmingham into a commuter hub for the capital.
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Airport Access: Birmingham Airport offers great international connections, particularly to Europe and the Middle East, which is a major plus for expats maintaining ties abroad.
A Diverse Business Community
Birmingham is one of the youngest and most ethnically diverse cities in Europe. For an expat entrepreneur, this creates a welcoming environment and a broad test market for new products. The city is particularly strong in advanced manufacturing and is seeing a surge in the professional services sector (banks like HSBC have moved their UK HQs here).
Best For: Advanced Manufacturing, Logistics, Real Estate, and Professional Services.
Edinburgh: Innovation and Quality of Life
Scotland’s capital is distinct from English cities in law, education, and atmosphere. Edinburgh is frequently voted the best place to live in the UK, making it a strong contender for the best city for business in the UK as an expat who values work-life balance.
A Hub for Data and Science
Edinburgh is not just a tourist destination; it is a powerhouse of intellect.
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The University Factor: The University of Edinburgh is world-renowned, particularly in Artificial Intelligence (AI) and Informatics. If your business relies on deep tech or data science, this is the place to be.
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Financial Might: Outside of London, Edinburgh is the UK’s largest financial center, with a history of banking and asset management stretching back centuries.
The Expat Experience in Edinburgh
The quality of life is exceptional. The city is walkable, historic, and surrounded by nature. However, the cost of living is higher than in Manchester or Birmingham, though still lower than in London.
Best For: AI/Deep Tech, BioTech, Asset Management, and Tourism.
Bristol: The Creative and Green Leader
Located in the South West, Bristol has a unique vibe. It is rebellious, artistic, and deeply committed to sustainability. If your business focuses on GreenTech or creative media, Bristol is arguably the best choice.
The Silicon Gorge
The area surrounding Bristol and Bath is often called “Silicon Gorge” due to the high density of high-tech microchip and computing companies. It has a mature tech ecosystem that rivals Cambridge and Oxford.
Sustainability and Culture
Bristol was the UK’s first “European Green Capital.” Businesses with a strong ESG (Environmental, Social, and Governance) focus thrive here. The city attracts a specific type of talent: creative, eco-conscious, and highly skilled.
Best For: Green Energy, Aerospace, Robotics, and Creative Media.
Leeds: The Digital and Financial Contender
Leeds is often overlooked by international observers, but it is the UK’s fastest-growing legal and financial center outside the capital.
Financial Stability
Leeds is home to the Bank of England’s northern hub and houses major offices for the “Big Four” accounting firms. For B2B businesses serving the financial or legal sectors, Leeds provides a dense client base with less competition than London.
Digital Roots
Leeds has a surprisingly robust digital sector, particularly in health-tech (anchored by NHS Digital being headquartered in the city). The cost of living is very attractive, allowing for a high standard of living for expat business owners.
Best For: Legal Tech, Health Tech, and Financial Services.
Important Considerations for Expats Starting a Business
Once you have selected your city, there are logistical hurdles to clear. The UK environment is business-friendly, but bureaucracy exists.
1. The Right Visa
Before you can leverage the best city for business in the UK as an expat, you need the legal right to work.
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Innovator Founder Visa: This is the primary route for entrepreneurs. You need an innovative, viable, and scalable business idea approved by an endorsing body.
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Global Talent Visa: If you are a leader in digital technology, arts, or science, this visa offers more flexibility than the Innovator route.
2. Banking and Credit
Opening a business bank account is notoriously difficult for non-residents. You may need to incorporate your company (via Companies House) and have a UK residential address before traditional high-street banks will accept you. Digital banks (like Monzo, Revolut, or Starling) are often more expat-friendly.
3. Understanding Business Rates
“Business Rates” are a tax on the occupation of non-domestic property. London has the highest rates. When calculating your office costs in Manchester or Birmingham, remember that the savings aren’t just in rent, but also in these taxes.
Conclusion: Which City Wins?
So, what is the best city for business in the UK as an expat?
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If you need VC funding and global prestige: London.
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If you want value for money, growth, and a digital vibe: Manchester.
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If you are in manufacturing or need central connectivity: Birmingham.
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If you are in data science or finance: Edinburgh.
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If you are in creative tech or sustainability: Bristol.
The UK offers a decentralized economy where success is no longer confined to the M25 ring road around London. By looking regionally, expat entrepreneurs can find supportive ecosystems, lower costs, and a higher quality of life, giving their new venture the best possible chance of survival and growth.
