National results for the United Kingdom reflect the
combined results for two major cities: London and
Manchester. Business costs are very different between
these two cities, with a spread of 9.0 percentage points
separating them. Even with the current strength of the
UK pound relative to the euro, Manchester enjoys the
lowest business costs among the 10 major European
cities compared, while London is the most costly
location among the European cities.
The results for the United Kingdom vary significantly
by sector, ranging from fifth place ranking for
manufacturing to ninth for R&D services. Moderate
wage and salary levels represent an advantage for the
UK in most sectors, but especially in the corporate
services sector. However, the highest office leasing
costs among the study countries drag down the UK
rankings in the service sectors, especially for R&D
which has a higher space requirement per employee
than digital or corporate services.
The UK pound managed to hold some ground against
the rising US dollar in 2015, resulting in a rise in value
relative to other currencies. However, other cost trends
as noted in the table also contribute to the overall results
for the UK in the current study.