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Manchester 'benefitting from high costs in London'

30/11/2007

High rents and labour costs in London has led to increased business activity in Manchester, it has been claimed.

According to a report in the Economist, corporates are constantly seeking ways to move work out of the expensive south-east to places like Manchester where costs are lower.

Ivan Royle of the Bank of New York Mellon, which opened a European office in Manchester Piccadilly in 2005, told the publication that it made sense for companies to conduct operations outside of London.

If the bank had expanded in London's Canary Wharf, not only would it have paid very expensive rental costs, it would have had a smaller pool of talent to draw from, he said.

But by moving to Manchester, the bank is able to enjoy cheaper costs and can recruit from a massive postgraduate population.

His comments come after a report by Cushman & Wakefield stated that Manchester is second-best city in Britain for businesses, behind London, and is the top location for new company headquarters.