College receives £600k to train skilled agri-food workforce
Yorkshire’s DJH acquires historic Midlands accountancy practice
Engineering construction workforce in Yorkshire and Humber to grow by almost 40%
Atlantic rowers swap oars for golf clubs at £31,500 Yorkshire charity fundraiser
Startup survival rates boost Leeds business outlook
Leeds has emerged as one of the UK’s most resilient cities for new businesses, ranking third nationally for startup survival over five years, according to new research by finance platform Pheabs.
The study found that 48% of startups in Leeds remain operational after five years, which is significantly higher than the national average of 39–41%. The city trails only Newcastle (52%) and Rutland (50%) in the rankings.
Pheabs evaluated key business metrics such as average annual income, business density, and sectoral spread to determine where startups are most likely to succeed. Leeds’ strong performance is attributed to its accessible transport links, moderate setup costs, and a supportive entrepreneurial ecosystem.
With a population exceeding 800,000, Leeds offers scalable potential for SMEs compared to smaller urban centres. Its economic ties across West and South Yorkshire, connecting cities like York, Harrogate, Sheffield, and Bradford, further strengthen the regional business environment.
Other high-performing areas include York (47%), Surrey (44%), Bristol (44%), and Lancashire (41%). The report highlights the broader challenge of SME sustainability across the UK, where only half of startups typically survive past their fifth year, underlining the pressure from rising labour and operational costs.
AI growth zone bid targets £85bn boost for North Yorkshire
North Yorkshire Combined Authority has submitted a proposal to become one of the UK’s five designated Artificial Intelligence (AI) Growth Zones, projecting an £85 billion economic uplift for the region if successful.
The joint bid, backed by North Yorkshire Council, Drax Power Station, the University of York, and other regional partners, positions the area as a hub for AI innovation across key sectors including agriculture, life sciences, clean energy, creative industries, and rail.
Central to the proposal is the creation of a new AI and Clean Energy campus at Drax Power Station, which would explore bio-energy with carbon capture and storage (BECCS) as a route to carbon-negative power generation. The initiative is also expected to help safeguard 7,000 jobs, with 3,500 of those in northern England.
The submission estimates that North Yorkshire could capture up to 15% of the UK’s projected AI economic growth by 2035, aligning with national ambitions to integrate AI technologies across industries and enhance digital inclusion.
An official announcement on the AI Growth Zones is expected on 11 June as part of the government’s Comprehensive Spending Review.
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Council seeks new housing partner for historic Huddersfield site
Kirklees Council is seeking a new development partner for the Grade II* listed Estate Buildings in Huddersfield, following the withdrawal of the original housing provider, Thirteen Group, which cited sector risks.
The site, located near the George Hotel and railway station, had previously secured £1.25m in government funding to support enabling works for a planned social housing scheme. The withdrawal of Thirteen Group leaves the council exploring alternative options to repurpose the building, which dates back to the late 1800s and features protected interiors, including stained glass, carved fireplaces, and decorative wood panelling.
The council acknowledges that redevelopment will be complex and costly due to the building’s listed status, but intends to use the remaining grant funding to reduce upfront costs and attract a developer. Under the proposed model, a selected partner would enter into a building lease agreement and acquire the freehold upon project completion.
The council estimates that the redevelopment could generate up to £95,000 in annual council tax and reduce ongoing maintenance costs, currently exceeding £29,000 per year.
A cabinet decision is expected on Tuesday. If no viable contract is in place by 31 March 2028, the council risks having to repay the £1.25m grant.