Perth and Kinross named UK’s top local authority for business growth potential for second year running

Perth and Kinross has been named the UK’s top local authority for business growth potential for the second year in a row, reinforcing its position as one of Scotland’s strongest destinations for investment and enterprise.

The accolade recognises areas with the highest concentration of businesses forecast to achieve significant growth over the next three years, based on independent analysis of company performance and projections.

The analysis sees Perth and Kinross top the UK ranking, with 11 per cent of businesses predicted to achieve high growth in 2026. Strong performances across food and drink, tourism, energy transition and advanced manufacturing put the region well ahead of the national picture.

Published in the Growth Outlook 26 report, the analysis is conducted by Growth Flag, an innovative business intelligence tool with over 90% accuracy in forecasting which businesses will go on to achieve 20% growth in the next year. The robust data tool is used across the UK to identify the latest business trends - supporting more effective interventions that can have a positive impact on growing local economies.

Perth and Kinross Council (PKC) leader Councillor Eric Drysdale: “This tremendous success is a result of the hard work, resilience and innovation of our business community, and the underlying strength and diversity of our local economy.

“The Council is committed to supporting businesses and helping them to create a stronger and more sustainable local economy. We will work together to drive the economy forward and ensure Perth and Kinross remains one of the best places to live, work and do business.”

Richard Jeffery, co-founder of Growth Flag, commented: “Scotland is home to some of the UK’s most exciting growth stories. It is fantastic to see the continued strong performance of Perth and Kinross in this year’s report as it tops the UK rankings for the strongest business growth potential in 2026. The area’s diverse strengths are key to supporting the local economy and helping to unlock business growth.”

The continued recognition follows Perth and Kinross Council’s ambitious launch of their £530 million Investment Prospectus in summer 2025, which lays out a compelling vision for sustainable, long-term growth across the region.

Outlining eight transformative projects that collectively support Perth and Kinross’s ambitions to lead in sustainability and clean economic growth, the prospectus builds on a strong track record of public-private partnerships and collaboration with industry, education and investors.

Spanning a 15-year period from 2025 to 2040, the portfolio covers market-ready opportunities, and longer-term investor-led partnerships in energy and net zero, the circular economy, food and drink, light industrial, travel and logistics, leisure and retail, accommodation in tourism and residential.

Councillor Ian Massie, vice-convener of Perth and Kinross Council’s Economy and Infrastructure Committee, commented, “Our new £530 million Investment Prospectus offers a compelling case for doing business in Perth and Kinross and shows that we are serious about delivering sustainable growth that benefits local people and businesses alike.

“Providing a clear, ambitious pipeline of opportunities for investor and developer-led partnerships, both domestically and internationally, it covers projects from net zero energy and circular economy projects to major regeneration sites in the heart of Perth.

“We want investors, entrepreneurs and growing companies to see Perth and Kinross as a place where ideas can scale, innovation is supported, and long-term success is achievable. Our message is clear – Perth and Kinross is open for business.”

Perth and Kinross consistently ranks among the UK’s top places to live and work and forms a central part of the Tay Cities regional economy. Recent years have seen significant investment in transport infrastructure, digital connectivity, cultural assets and low-carbon projects, helping to create the conditions for high-value business growth.

The council’s Investment Prospectus is aimed at UK and international investors, developers and operators seeking opportunities in sectors including renewable energy, low-carbon heat networks, advanced recycling, logistics, and life sciences.

Featured investments in include:

• Eco Innovation Park at Perth West
• Perth City Heat Network
• Strategic Energy Partnership
• Advanced Plastics Sorting and Upcycling Facility
• Binn Eco Park
• Northfield Business Park
• Cultural Quarter (Perth City Centre) Regeneration Project
• Mill Quarter (Perth City Centre) Regeneration Project

Full prospectus available at: investinperth.co.uk/investment-opportunities

About Growth Flag and their Analysis

Growth Outlook 26 is the UK’s most comprehensive data-led analysis of business growth potential at local authority level. It uses Growth Flag’s predictive Growth Score, which assesses hundreds of financial metrics to determine the likelihood of a business growing by 20 per cent.

This year’s report is based on 4.3 million businesses, with growth projections applied to over 2.5 million businesses with at least one set of filed accounts, across all UK regions and sectors.

The report is published by Growth Flag, a collaboration between Red Flag Alert and GC Insight (part of the Growth Company). For the past three years, the Growth Score has consistently achieved over 90 per cent accuracy in predicting which businesses will go on to grow by 20 per cent or more.

Full report available at: growthflag.com/outlook