A collaboration between Make It Cheaper and the Centre for Economic and Business Research has resulted in the creation of the Business Cost Index. This has been compiled to show the cheapest and most expensive places in the United Kingdom to set up a business.
Historical information from the Office for National Statistics has been utilised to create the index, based on previous costings of transport, physical input and materials, energy, labour and financial services. The results show that Wales is the cheapest region for businesses, while London is the most expensive. The cost of running a business in Wales is four percent less than the average for the whole of the UK, which is 10.2 percent. The North East and Yorkshire and the Humber follow closely behind.
Although Wales is the cheapest area for a business to operate, the “business birth rate” is the lowest in the country with 9.1 percent. For every 100 businesses that are already in existence, a further ten businesses are set up every year, according to figures for the national average.
At the other end of the scale. London is the most expensive region for businesses, but also has the most start ups in the country, at 12.6 percent. The cost of running a business in the Capital is 16 percent more than the average for the UK. Predictions from Make It Cheaper include energy costs rising by 8.5 percent, transportation costs increasing by 20.5 percent and insurance premiums rising by 7.1 percent.
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