Newcastle named best UK city for small business workers
The ranking comes from SME lender iwoca’s new ‘Top 25 Towns & Cities for SME Jobs’ list, which uses ONS data and factors in job density, growth in small businesses, average wage, commute times, and house prices.
Newcastle took the top spot thanks to a 6.6 per cent rise in its SME sector over the past five years, combined with affordable housing and a strong jobs market.
Seema Desai, chief operating officer at iwoca, said: “Small businesses uplift our high streets, create local jobs, and provide fulfilling, diverse career opportunities.
Grate Newcastle founder Moz Murphy (Image: Supplied)
“Our latest ranking confirms that the very best places to work for SMEs sit in the heart of this country’s regions.
“With Newcastle leading the way, Britain’s SME sector is a source of innovation and growth in every corner of the UK.”
The city offers a job density of 1.06 and a median hourly wage of £19.41, with average house prices below £200,000.
A £950 million regeneration scheme, announced in April 2025, will bring 2,500 new homes and more than 161,500 square feet of commercial space to the west of the city centre.
Chi Onwurah, MP for Newcastle upon Tyne Central and West, said: “I’m delighted that iwoca has ranked Newcastle as the best city in Britain to work for a small business.
“This is a testament to the creativity and community spirit of our local entrepreneurs and workers which I have long championed.
“Small businesses are the backbone of our economy, and I’m pleased to see them thriving in Newcastle—creating good jobs, driving innovation and strengthening our communities.”
Ipswich and Peterborough followed in second and third place.
Other North East cities did not fare as well.
Sunderland took 22nd place, held back by lower job density and hourly pay despite house prices averaging £144,950.
Middlesbrough, 16th in last year’s list, dropped out entirely due to long commute times and low pay.Grate Cheese founder Moz Murphy says people travel from across the region to buy her British and Irish cheeses (Image: Supplied)
Moz Murphy, founder of Grate Newcastle, shared her experience as a small business owner in the city.
Ms Murphy said: “I’ve lived in Newcastle for 20 years, so opening my own cheesemonger here in October 2020 felt like a dream come true.
“It’s just me full-time, two part-timers for most of the year, and extra hands at Christmas.
“Most of our customers are from Newcastle and Gateshead, but we do have people travelling in from across the North East for our British and Irish cheeses.
“Rising costs—everything from stock to energy—are tough, but the support from the local community makes it all worthwhile.
“I’m proud to bring something special to the city I love.”