BOSSES of small companies have voted Oxford as the country's top city for business.

Oxford pipped Cambridge to the top spot in Black Horse Relocation's best Cities for Business survey.

The university cities came in ahead of Edinburgh, Manchester, Bristol, London, Leeds, Nottingham, York and Newcastle-upon-Tyne.

The study asked company bosses to rate the best cities, based on a number of factors which they consider to be most import ant to business.

Firms say the most important factor for business when choosing where to locate is the quality of the available workforce.

Despite surveys predicting a slowdown in the economy, more than two thirds of small and medium-sized businesses increased the size of their workforce last year. Three quarters expect to expand again.

John Carolan, managing director of Black Horse Relocation, said the survey showed the most important factors to business were:

Quality of available workforce

Transport network

Property and premises

Quality of life.

He said: "Oxford is perceived by business to be streets ahead of the opposition. Increasingly the impact of the skills shortage on smaller businesses is placing greater importance on the availability of people when considering where to locate a business."

The survey shows 28 per cent of companies have recruited members of staff who have had to relocate to take the job.

Mr Carolan said every year more firms were relocating new recruits.

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