EDINBURGH and Glasgow have been named as two of the best cities outside of London in which to start a new business in new research.

The capital was second in the study from independent price comparison site NerdWallet, closely tailing Leeds and beating Birmingham, Glasgow and Manchester in third, fourth and fifth places respectively.

It said there was a record growth in the number of start-ups with more new businesses created between April and June than in any other second quarter on record.

Major employers such as the UK Civil Service, the BBC and Channel 4 have committed to moving operations outside London, as remote working has risen.

Researchers looked at each city’s business survival rates, active business population, average rents and population, along with average monthly pay and education levels.

Edinburgh has climbed four places in the rankings since the report was last completed in 2019.

It also had the third highest number of people with an NVQ Level 4 qualification or above. While Glasgow recorded the lowest business survival rate, it had the fourth highest active business population.

Nic Redfern, finance director at NerdWallet, said: “It is fantastic to see so many in Britain starting their own business despite the challenges posed by supply chains and Covid-19. As we build back from the pandemic it is essential that we do more to support new start-ups in key UK cities such as Edinburgh and Glasgow to help unlock more of their economic potential.

“Edinburgh is a leading financial centre and has thriving digital, science and tech industries, which have developed partly thanks to the internationally renowned University of Edinburgh and initiatives such as the Edinburgh BioQuarter.

“Glasgow has a rich history in manufacturing and engineering and a diverse economy with strengths in sectors including tourism, financial services and technology.”