Barnsley’s the place to do business

IT may not have the same world famous history or stunning landmarks as Paris or London, but Barnsley can lay claim to be a better place to set up a business.

The South Yorkshire town, best known for its coal mining industry, has been named Europe's third most cost effective place to locate a company in a study of business costs, ahead of the two capital cities.

Barnsley was only beaten by Mulhouse and Toulouse, both in France, in KPMG's 2008 Competitive Alternatives study which compared business costs in 136 cities in 10 countries.

Duncan Mycock, office senior partner at KPMG in Leeds, said: “Businesses that can operate out of smaller towns such as Barnsley can reap major cost advantages. It's pleasing for Barnsley to have credible evidence of competitiveness given there is strong competition for business investment within regions across Europe.

“The opening of labour markets, more competitive tax rates, and investment in infrastructure implies that while Europe has shifted its position relative to the US, there is still strong competition among European countries.”

The study found that the Netherlands, Italy, Germany, and the UK have seen the greatest increases in costs relative to the US.

In Europe, the UK has benefited at the expense of continental Europe from the stronger appreciation that the Euro has seen relative to the Pound.

The study measured 27 significant cost components that are most likely to vary by location, including labour, taxes, real estate and utilities.

The study also compared data on a variety of non-cost competitiveness factors that influence the attractiveness of business and site locations such as innovation, business and environmental regulation, quality of infrastructure, energy supply, and quality of life.

Glenn Mair, of MMK Consulting, one of the authors which wrote the study in association with KPMG, added: “Selecting the most favorable business location doesn't always come down to merely dollars and cents.

“One of the key reasons the non-cost factors were included in this study is that factors such as education, skilled labor pool, and cost of housing, for example, may play a key role in the success of a business.”