London is the best major European city for business, a study reveals.

In a poll of senior executives from 500 businesses across Europe carried out by TNS BMRB, London was named top for the second year running.

In second place and third place respectively were Paris and Frankfurt, leaving the top positions in the survey unchanged from last year.

The next UK cities to rank are Manchester at twelfth and Birmingham at fourteenth, with Edinburgh making the list for the first time at position 27.

News of developments comes as figures released last week by NB Real Estates showed rental values for office space in the City of London has risen 25 per cent over the last year.

The surge in values, which has seen average rents for Grade A office space in the City rise from £42.50 per sq ft in the first quarter of 2010 to £53 in the third quarter, has been driven by a shortfall in demand.