UK’s 25 top regions for business growth revealed – and they’re not just in the south

Manchester, Leeds and Oxford have been hailed as some of the leading powerhouses for business growth in the UK, according to a recent report. The research, conducted by NatWest and data firm Beauhurst, examined growth in terms of innovation, profit, headcount and turnover among mid-market companies across the country.

Manchester earned its high ranking due to its booming creative and digital sectors, driven by MediaCityUK and a thriving start-up environment. Oxford distinguished itself with its research-oriented businesses, many of which originated as university spin-offs before growing into significant mid-market companies.

Leeds has carved out a name for itself in the health technology sector, complementing its long-standing financial services industry, bolstered by close connections to NHS Digital and top hospitals.

While London continues to be the largest hub for profit, headcount and turnover in the mid-market, the report indicates that other regions of the UK are increasingly making their mark through innovation.

Smaller authorities also featured on the list, with Slough and Telford & Wrekin both identified as areas experiencing rapid growth.

Swindon has also emerged as one of the country’s leading hubs for climate technology, thanks to its concentration of renewable energy and clean-tech firms.

Andy Gray, managing director of commercial mid-market at NatWest said: “The UK’s economic story is no longer written only in its biggest cities. Across the country, mid-sized businesses are scaling up, investing in people and creating high-quality jobs.

“These boom regions demonstrate that entrepreneurial energy and economic resilience can flourish anywhere.”

South Cambridgeshire was identified as a burgeoning growth centre, home to a flourishing cluster of university spinouts.

Aberdeenshire also demonstrated strong performance in the innovation category, reflecting its long-standing expertise in oil and gas, now being channelled into renewable energy, carbon capture and wider climate technologies.

Local firms have reaped benefits from specialist engineering skills, proximity to North Sea projects and robust research links – aiding the area’s transformation into a hub for innovation in the UK’s energy transition.

The research centred on mid-market companies with annual turnovers between £25m and £500m – these businesses account for 26 per cent of employment and 30 per cent of UK economic Gross Value Added.

The findings also forecast that, given the right support, mid-market companies could contribute an additional £115 billion in turnover and £35 billion of Gross Value Added by 2030 – despite representing just 0.5 per cent of businesses in the UK.

Henri Murison, chief executive at The Northern Powerhouse Partnership, said: “While London remains an important location for mid-market businesses, this new report from NatWest clearly points to the impressive growth and innovation that is taking place in the North.

“As the Autumn Budget approaches, we should be backing concrete steps towards adoption and diffusion of innovation in businesses that are seeking to scale up, providing more high skilled jobs in Northern towns and cities, and playing a fundamental part in delivering the UK Government growth mission.”

Louise Hellem, chief economist at the CBI, said: “This report underlines the vital role the mid-market sector plays in driving regional growth and strengthening our economy.

“These businesses are not just surviving, they’re expanding, innovating, and investing in their communities. To fully unlock the UK’s potential and develop high growth clusters, we should harness their strengths as part of regional growth plans, ensure they are engaged in shaping local skills plans and have greater access to finance to scale.”