Preston has been ranked the fourth most affordable city in the UK for small businesses, according to a newly published national report from business price comparison platform BusinessPrices.co.uk.
The UK Business Affordability Index 2025 compared business running costs across the 30 largest towns and cities in the country, including major urban hubs such as London, Manchester, and Birmingham. The report analysed six core categories that impact SMEs: office rental costs, local salaries, energy prices, business insurance, broadband, and local business rates.
Preston stood out for its strong performance across all categories. With modest office rents, low insurance premiums, and affordable broadband and energy costs, the city was identified as a top destination for entrepreneurs seeking value and sustainability.
According to the BusinessPrices.co.uk report, the average cost of office space in Preston is significantly lower than the national average, while business broadband and energy remain competitively priced. Business rates were also more favourable than in many larger UK cities.
Babs Murphy, Chief Executive, North & Western Lancashire Chamber of Commerce, said:
“Preston stands out as one of the most affordable places to establish and grow a business, thanks to its competitive local salaries, affordable office rents, and low energy and insurance costs. With reasonably priced broadband and favourable business rates, entrepreneurs can maximise their investment and thrive in a supportive environment!”
The report also revealed stark differences in affordability across the country. Northern and coastal cities dominated the top of the rankings, while larger metropolitan areas like London, Manchester, and Birmingham were found to be the most expensive places to operate, primarily due to high property costs and insurance premiums.
Preston’s affordability is likely to be of interest to new business owners, particularly in retail, hospitality, logistics, and professional services — all sectors that benefit from manageable fixed costs and access to strong local infrastructure.
The city has continued to see investment in its business support networks and transport links, alongside efforts to grow the digital and low-carbon sectors. Combined with low start-up costs, this makes Preston an appealing location for entrepreneurs and scale-ups alike.
About BusinessPrices.co.uk
BusinessPrices.co.uk is a UK-based business prices comparison platform helping small and medium-sized enterprises save money on essential services. From business energy and phone systems to finance and accounting, the site provides clear, data-driven insights and quotes to support better business decisions and reduce operating costs.
The full UK Business Affordability Index 2025, including data, graphs and cost comparisons for all 30 cities, is available to view here.
