NEWCASTLE is fast becoming one of the most popular cities for business in the UK, according to a survey.

The city ranked third, ahead of London, in the research - a dramatic improvement on the 16th place berth it occupied when the survey was done two years ago.

Leeds was rated the best city for business in the UK, closely followed by Manchester. The study was by OMIS Research, and accounts for about a third of all businesses and employment across the country.

Sir Ian Wrigglesworth, chairman of Newcastle Gateshead Intiative, said: "These findings demonstrate the massive shift in external perceptions of Newcastle as a city in which to do business. A move from 16th to third, the highest of any UK city, is a huge achievement.

"Investment in the city's facilities and infrastructure has made a considerable difference in business confidence."