UK economy is migrating north

The KDB Annual Survey of UK Company Directors 2008 has found that more and more company directors are choosing to live outside of London and the South East.

The KDB Annual Survey of UK Company Directors 2008 has discovered 'a gradual migration of company directors from the South of England, to more northerly regions, as well as Scotland and Wales'.

This seems to indicate a shift towards a more balanced economic profile.

The 2.83 million company directors in the UK make a disproportionate contribution to both local and national economies.

Despite making up just 6 per cent of the adult population, they contribute one third of income tax revenue and more than GBP5.7bn in Council Tax.

As a result, they serve as a strong indication of the vitality of local economies.

While London still has the highest density of company directors in the country (10.4 per cent of the adult population), the South East (8.1 per cent) saw the biggest fall in the proportion of the population who are company directors with the figures for the South Coast (6.4 per cent), East Anglia (5.5 per cent) and South West (5.7 per cent) dropping as well.

In contrast, the North East (4.2 per cent), North West (5.1 per cent), Midlands (5.2 per cent), Wales (3.9 per cent) and Scotland (4 per cent) all saw their proportions grow.

This trend was reflected in the UK's large cities, with Birmingham (5.2 per cent), Edinburgh (4.8 per cent), Glasgow (3.9 per cent), Liverpool (3.9 per cent) and Manchester (4.5 per cent) all recording growth, but 46 out of the top 50 London districts showing a decrease.

The report suggests that the reason for the shift may be advancements in 'modern web and communications technology, which allows people to run their businesses in virtually any location' but 'may also represent a trend among affluent people towards putting more value on quality of life and "off-time"'.

As regeneration projects provide quality infrastructure and culture across the UK, the lure of the capital is diminished.

KDB is a data analysis firm.

Entrepreneurial owner-managed companies with fewer than 100 staff employ 34 per cent of the nation's workforce.

The highest ranking postcode district in London is Hampsted (NW3) where 18.26 per cent of the adult population is a company director.

The figures were obtained by ascertaining the number of company directors whose registered home address was in each postcode.

This figure was then expressed as a percentage of the overall adult population in the area.

The addresses of directors were ascertained from the registered address of limited company directors held at Companies House.

Back to top