Most expensive business locations in the UK revealed

New research shows that Milton Keynes is the most expensive place to run a small business in Britain outside the capital, followed closely by Cambridge, Oxford and Guildford.

The Top 10 most expensive places to run a business outside London, according to the Alliance & Leicester Business Cost Monitor, are:

1. Milton Keynes

2. Cambridge

3. Oxford

4. Guildford

5. Edinburgh

6. Chelmsford

7. Reading

8. Stevenage

9. Bristol

10. Manchester

The Business Cost Monitor compares the operating costs for SMEs in towns and cities across the UK, excluding Greater London. It scores each area according to the financial issues that impact on local small businesses; from labour costs, business rates and rental values to housing costs and quality of life.

In terms of retail property space rental costs, Milton Keynes tops the list with average costs of £2,500 per square metre. Cost of living and property prices are also high. Wage costs are also high - with employees earning around £517 per week (the eighth highest in the UK).

Less surprisingly, Cambridge and Oxford are next on the list. Both towns score highly for both office and industrial rental space but are hard hit by the cost of living and housing in the area. In fact, Oxford has the second most expensive house prices in the UK after the South East and London.

Guildford follows in 4th place, ranking highly on both living costs and office space rental prices. Wages are very high - in fact only London scores higher in terms of average earnings.

The Scottish capital follows in 5th place. Despite relatively low transport costs and few businesses worrying about the cost of living, it is high labour costs and rental values for both retail and industrial properties that push it into the top five.