YORK has been described as a "hotbed of innovation" as a new report reveals the city is creating 20 per cent more new businesses per head than the rest of the UK.

The survey by York accountant group UHY Calvert Smith showed 17 new start-ups were set up per 10,000 of population in the city compared to an average of 14 nationally.

According to the report York’s rate of net new business creation was higher than many regional competitors, as Leeds, Doncaster, and Hull only saw respective increases of 16, 12, and 12 net start-ups per 10,000 of population.

UHY Calvert Smith says the city’s established reputation as a "national hub for financial and professional services" is a key driver, creating a "raft of opportunities for ambitious, innovative entrepreneurs looking to start their own businesses", making reference to major insurance companies Aviva and Hiscox already having large offices in the city.

The accountants also cited York’s transport links as a "significant factor" in attracting financial and professional service firms to the city offering fast rail links to numerous cities across the North of England, such as Manchester and Hull.

UHY Calvert Smith adds that business creation in York is also boosted by the availability of a well-educated labour force largely provided by its two universities, with the University of York and York St. John University having both expanded rapidly in recent years and now boast around 22,000 students.

The universities play a part in the figures, according to report, by attracting and cultivating new businesses, with the University of York’s Catalyst business centre being home to several start-ups, and its Student Internship Bureau giving funding for SMEs to provide internships for current undergraduate students, boosting employment and retaining well-educated graduates in the area.

Nevil Pearce, partner at UHY Calvert Smith, said: "These figures highlight York’s status as a hotbed of innovation and entrepreneurship which is playing a key role in powering UK plc.

"York is in an excellent position to nurture and develop new business creation and take advantage of the strengthening economic climate to cement its reputation as an important enterprise centre.

“Home to a range of financial and professional service firms, with a real creative buzz and a rich seam of talent, plus its appeal as a great place to live, yet still within easy reach of clients in the capital, are all key factors enabling new businesses to put down firm roots.

"The universities also help create more opportunities for other creative entrepreneurs to set up technology start-ups around the city, in turn boosting start-up numbers."

The wider report revealed Staines, in Surrey, is the number one town for business creation, with 43 more new businesses per 10,000 people than a year ago.