Choosing Which UK City To Start Your First Business

27 May 2026

Toby Patrick

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When it comes to the UK economy at the moment, a lot of prospective owners are probably of the mind that it's not the best time to start a new business. But this isn’t the case across the board. Numerous industries are either experiencing steady, consistent growth or are thriving on the chaos and remaining unfazed, like companies operating within AI and technology spaces.

While the type of industry is no doubt a huge factor that can determine the success of a business, in many cases, a company's location is just as important. Where you choose to settle can be influenced by several factors, from the cost of operations, employee wage expectations, rent, and so much more.

London

The UK’s capital is naturally home to the headquarters of a lot of very successful businesses, but with London’s high business rates, employee wage expectations and rental costs, setting up there can be eye-watering for a small, start-up business.

While some options a bit further out from the city might be more attractive in those aspects, it’s again dependent on the type of business you own. For example, a fashion retailer might thrive in London's city centre, as footfall, tourism, and overall population are higher than in any other major city. That being said, other areas can also be more attractive in terms of costs, such as a shopping centre in Essex and so forth.

It’s also worth noting that in 2023, the average turnover for a small business in London was just over 100,000, with 9% business growth.

Leeds

Known as one of the fastest-growing tech hubs in the North. Within the digital sector alone, there was a 125% growth above the national average, which screams new opportunities to start your own tech business here. Leeds is great for that area of business, but also holds the benefits of competitive business rates, much cheaper rental compared to southern areas, and you have the added advantage of being located in a skilled talent pool of university students, which allows you to build your company, train your business, and also offers affordable wages to begin with as you grow and enter a new market.

Manchester

England's second city and capital of the north is an unsurprisingly hub for a range of industries, with a history of success in the textile industry, but in recent years it has boasted promising opportunities for creative media and fashion, which are both going through periods of consistent growth.

Not to mention that Mancunians love their nightlife, so that would also be a promising opportunity, even if the hospitality industry is struggling by and large, bars in Manchester are having more success, as people there are heading straight to Irish bars for a pint, music and vibes so it’s something to consider for hospitality start-ups.

Fashion, like other cities such as London, is at Manchester’s core, but like other industries, it’s very competitive; that’s why incorporating a creative media element would allow new businesses within this field to thrive there.

Manchester as a whole can be expensive, but there are places where you can find a real bargain for rental units, there are also pretty competitive. It’s also worth considering that in 2023, Manchester's average business turnover was just under £90,000, with 4% growth that year.

Liverpool

Liverpool is another northern powerhouse with potential in a variety of fields and opportunities for professional services, such as tech and cybersecurity. Though it’s still a major UK city, its economy is slightly smaller than that of Manchester, while still growing consistently, but, on the bright side, operating costs are also generally lower.

There is an art to getting your foot in the door without being bled out in the first year on business rates and rent, so Liverpool is a great place to consider starting up. It might be an easier environment in which you can build your reputation, customer base, and make a name for yourself before expanding into other major cities.

Final Thoughts

When it comes to picking which city to start your start up it’s completely dependant on what industry you want to emerge into, what you can afford in terms of business rates, wage expectations and rent prices, as while you might not turn a profit in your first year or two, you don’t want to dig yourself into a hole that will burnout your business before you’ve even started.

The vast majority of cities tend to be tech and financial hubs, which just comes with the modern-day expectations and overall growth, but there are so many other industries that are also growing to consider, and choosing something you are passionate about can make individuals, whether it’s B2B or B2C, seem so much more inviting and interested in it compared to others.

Make sure you do your research in terms of growth within that industry in various locations over the last 5 to 10 years before setting up shop anywhere, as this will give a better insight into potential trends.

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UK Government Pressures Apple for Encrypted Data Access – Security Measure or Privacy Risk?

Paul Francis
Feb 11, 2025
4 min read

The UK government has taken a bold step in its ongoing efforts to strengthen national security, issuing a formal request to Apple demanding access to encrypted iCloud data. The demand, made under the Investigatory Powers Act 2016 (IPA)—often referred to as the "Snooper’s Charter"—could force Apple to create a backdoor in its encryption system, granting law enforcement access to user data that is currently inaccessible, even to Apple itself.

The UK argues that encryption prevents law enforcement from investigating serious crimes, including terrorism, child exploitation, and organized crime. Apple, however, has refused to comply, warning that such a move would undermine the privacy and security of users not just in the UK but globally.

The dispute has reignited the long-running debate over privacy versus security, raising serious concerns about the future of digital rights, government surveillance, and the potential consequences of setting a precedent that other countries may follow.

Why the UK Government Wants Access to Encrypted Data

The UK government insists that its demand is a matter of public safety and crime prevention. With technology evolving, criminals and terrorists have increasingly turned to encrypted services to communicate and store illicit material, making it difficult—if not impossible—for law enforcement to access vital evidence.

Government officials argue that:

Encrypted backups prevent police from gathering evidence – Many investigations, particularly those related to terrorism or child abuse, rely on digital evidence stored in cloud backups. Without access, law enforcement is effectively blind to potential criminal activity.
A controlled backdoor would not compromise regular users – The government claims that a well-regulated backdoor could provide law enforcement with access only in cases where it is legally justified, such as under a court order.
Other forms of surveillance are already permitted – The UK already has extensive data collection laws, including those that allow authorities to request communications metadata and access to unencrypted services. Extending this to encrypted iCloud backups is seen as a logical next step.

From this perspective, encryption is not just a tool for privacy—it can also shield criminals from justice, making it harder for authorities to investigate and prevent serious crimes.

Apple’s Resistance: The Security and Privacy Risks

Apple has made it clear that it will not comply with the UK’s request, arguing that creating a backdoor for government access would put all users at risk. The company’s Advanced Data Protection (ADP) feature provides end-to-end encryption for iCloud backups, meaning that even Apple cannot access a user’s data once encryption is enabled.

Apple—and many cybersecurity experts—warn that:

A backdoor for law enforcement is a backdoor for everyone – Any vulnerability introduced for one government could be exploited by hackers, cybercriminals, and foreign intelligence agencies.
The UK is not the only country that would make this demand – If Apple complies, other governments—including those with weaker human rights protections—may demand the same access, potentially leading to mass surveillance.
It would weaken cybersecurity globally – Encryption protects not just individuals but also businesses, financial transactions, and even national security infrastructure. Weakening it could increase cybercrime, identity theft, and data breaches.
There is no guarantee of ‘controlled’ access – While the UK claims any backdoor would be used responsibly, history shows that government surveillance powers often expand beyond their original scope.

Apple’s stance reflects a broader industry position: once an encryption backdoor exists, it is impossible to ensure it remains in the right hands.

The Precedent: What Happens If Apple Complies?

The implications of this case go far beyond Apple. If the UK succeeds in forcing the company to weaken encryption, it could set a precedent for other technology firms, including:

Google (Android devices and Google Drive backups)
Microsoft (OneDrive and Windows security systems)
Meta (WhatsApp, Messenger, and Facebook backups)
Encrypted messaging services like Signal and Telegram

This could trigger a global wave of government demands for similar access, making it increasingly difficult for any company to maintain strong encryption protections for its users.

There’s also the risk that the UK’s demand won’t stay limited to cloud storage. If Apple is forced to weaken iCloud encryption, what’s stopping governments from demanding the same for iMessage, FaceTime, and local device encryption?

Could Apple Withdraw Security Features from the UK?

Apple has taken drastic action before in response to government pressures. In 2023, it threatened to pull iMessage and FaceTime from the UK market rather than comply with potential encryption-busting requirements. While those laws were later amended, the current dispute over iCloud encryption raises the question: Could Apple withdraw its security features from the UK entirely?

Some experts believe Apple may choose to disable end-to-end encryption for iCloud backups in the UK, ensuring compliance without weakening security globally. However, this would leave UK users at a greater risk of cyberattacks, making them an easier target for hackers and surveillance programs.

Others suggest Apple could fight the order in court, delaying compliance for years while legal battles unfold. Given that the UK’s stance on encryption is stricter than many other Western nations, a legal challenge could pressure lawmakers to reconsider their approach.

A Dangerous Precedent in the Making

At its core, this debate is about where to draw the line between privacy and security. The UK government argues that its demand is necessary to protect citizens from crime, while Apple maintains that it would compromise global security by setting a dangerous precedent.

If the UK is successful, the world could see a dramatic shift in encryption policies, with other countries following suit. While government officials insist their intentions are to protect the public, critics warn that weakening encryption is a slippery slope, leading to widespread surveillance and reduced digital security for all.

As the standoff continues, the outcome will shape not just Apple’s encryption policies, but also the future of digital privacy, cybersecurity, and the balance of power between governments and technology companies worldwide.