I'll shortly be moving back to there and incorporating a company for my bootstrapped startup. I live in France at the moment and the decision to move and kick it off from the UK was a no brainer.
One of the major attractions is the SEIS scheme and the potential this gives me to attract funding via a crowd funding platform like http://www.crowdcube.com This sort of startup friendly business environment just doesn't exist anywhere else in Europe (at least that I'm aware of).
Edit: in connection to the above, would love to know if any UK HNers have had any experience with http://www.vwv.co.uk/ ? I need some legal advice before I incorporate and I've heard they're good and very startup friendly.