MORE companies are moving from the South-East to Northern England and Northern Ireland, according to a new survey.

The survey, by Royal Mail, revealed that eight out of the top ten towns for business were in the North.

Of them, Newcastle was the only one in the North-East.

The number of companies moving to the North is greater than the number setting up in the South and the Home Counties, the study found.

However, the South still has the larger number of businesses, accounting for 26 per cent of the total number of registered businesses in the UK, with the North, including Scotland and Northern Ireland, accounting for 24 per cent.

The fastest growing areas for businesses last year were Belfast, where 487 companies moved, Hull (183) and Blackburn (121).

Newcastle is the only North-East city represented in the top ten, at sixth position, with two per cent of the UK's businesses located there.

The business population increased by almost six per cent in Northern Ireland and by about 1.3 per cent in Scotland and the North of England, compared with a 2.2 per cent fall in London.

About seven per cent of companies moved last year, with two-thirds moving locally. The Royal Mail research was conducted following the launch of the Royal Mail Business Changes File, a database that enables businesses not only to keep track of present customers, but to identify new leads about businesses that have just started or have just moved.

Shaun Randles, head of data development at Royal Mail, said: "Royal Mail's Business Barometer is a valuable resource for companies in the UK to keep track of an ever-changing environment.

"With this information, companies can assess which are the prime areas for re-location or for new business start-ups.

"It is the first time such research has been available from Royal Mail on a local level and is a further indication of our commitment to supporting businesses in the UK."

Steve Rankin, CBI regional director, said: "If this becomes an increasing trend, then its obviously very good news for the region.

"However, it is not surprising. The North-East has an excellent reputation worldwide for the quality of its workforce, and its infrastructure.

"I am not surprised at Newcastle's placing in the top ten. It is a dynamic go-ahead place, and I am sure it will rise up those rankings in time."