Darlington is ranked the best town or city to work for a small business in Britain, toppling last year’s leader Newcastle, according to new research released today by iwoca, one of Europe’s largest SME lenders.

iwoca’s ‘Top 25 Towns & Cities for SME Jobs’ list ranks areas using ONS data on average wage, commute, job density, house price, and growth of the number of small businesses – all criteria that jobseekers look for in employment. The analysis reveals Darlington, Norwich, and Worcester as the top three areas to consider living in if you want to work for a small business.

Darlington tops the rankings

Darlington’s rise to the top of the list of towns and cities to work for an SME comes amid a wave of investment in the town. Construction of a new Government Hub for HM Treasury got underway at the start of the year, while Amazon has selected Darlington as the test centre for its UK drone delivery service. Both developments are expected to bring fresh opportunities for growth across the town’s SME community.

The town tops the rankings thanks to its winning combination of short commute times and affordable housing. Residents typically spend just 19 minutes travelling between work and home, compared to London’s 38 minutes, while the median house price stands at just £165,000 – a fraction of the capital’s £490,000.

Darlington rose 43 places from 2025, driven by a gradual improvement in commute times and a sharp turnaround in SME growth, which swung from -5.3% between 2019 and 2024 to +3.1% between 2020 and 2025.

North East powers ahead, but London sinks to new lows

The North East is one of the standout regions in the 2026 rankings, placing five towns and cities in the top 25 — matched only by the East of England. Darlington leads the charge in first place, joined by Newcastle upon Tyne (6th), Gateshead (15th), Middlesbrough (24th), and Stockton-on-Tees (25th).

In contrast, Greater London does not appear in the top 25 for the fifth consecutive year, falling to 92nd place in 2026, its lowest position yet. Lengthy commutes, high house prices, and a 2.2% fall in the number of SMEs in the capital place it far behind regional counterparts.

Seema Desai, COO at iwoca, said: “Darlington’s rise to the top of our rankings is a brilliant example of how regional towns can rival, and even outperform, major cities when it comes to jobs and small business opportunities. For jobseekers weighing up their options, our research is a reminder that some of the most rewarding SME careers are found in places they might not have considered. With affordable housing, short commutes, and a growing local SME sector, Darlington deserves to be on every ambitious worker’s radar.”

Lola McEvoy, the Labour MP for Darlington said: “We love to see it! SMEs are the lifeblood of the economy locally and nationally, and I recently met with the Business Minister to push for more public contracts to be awarded to our excellent local SMEs.

“To hear we’re officially recognised as top of the charts is fantastic. It takes courage to open a business, and I’m really pleased that more people are choosing our town as their headquarters.

“If you’re thinking of starting or expanding – Darlington is the place to be. We work hard, look after each other and you’re welcome here.”

Steve Harker, Leader of Darlington Council, said: “Darlington’s recognition as one of the best places in the UK for small business success is a welcome boost for our town. This is a testament to the resilience and ingenuity of our local entrepreneurs.

“This news is very encouraging, and we know sustained success depends on our continued collaboration and long‑term investment in sites for business, homes and transport. Our independent retailers and start‑ups are at the heart of Darlington’s identity, and this recognition highlights just their vital contribution to our economy.”