At a time when start-up businesses are under more pressure than ever to control costs, the savings in payroll and premises from locating outside London will play a part. Businesses that have located in Leeds find that investors appreciate the cost arguments. Bill Wilson, the chief executive of Teamtalk, puts much store on his ability to control costs. He cites the company's Leeds location as an important factor. In London and the southeast, technology and e-commerce companies face stiff competition for the best staff.
Trouble recruiting the right people, rather than high salaries per se, is a common complaint.
Businesses based in Leeds say the situation is easier, partly because of a strong local labour supply and partly because Yorkshire is an attractive location for skilled workers who are happy to relocate. But the conditions that make a location attractive to business are often less tangible than infrastructure, skills or premises. The city certainly has more bars, smart restaurants and cafes than it did five years ago. Whether business leaders see that aspect of the 24-hour economy as an unqualified benefit, only time will tell. For an audio special report on Leeds' e-business initiative, click here .