As the economy recovers London leads the way in generating growth. However, the capital has been named as one of the worst cities in the country based on one measure of economic success due to the staggeringly high property prices and strong congestion levels on public transport.
According to PwC and think tank Demos’ 2013 Good Growth Index, the accolade of best performing city actually goes to the smaller but prosperous Reading. Also appearing on the list are Aberdeen, Edinburgh and Southampton.
The report does not simply take GDP into account when measuring a city’s success. Instead, factors such as job opportunities, transport, skills and work/life balance play a main role, which PwC and Demos believe are instrumental in determining the overall prosperity of city life.
Chief economist at PwC, John Hawksworth, claims that the index demonstrates the business potential for the UK’s smaller cities as well as measuring the quality of life enjoyed by residents.
He says; “Our analysis demonstrates that there is a rising price for economic success for many of the largest UK cities.
“Increased congestion, pollution, income inequality and high house prices contribute to rankings in the index below that expected based on traditional measures.
“Medium sized cities with better quality of life tend to score better on our index based on what the public says is important to them.”
This index could certainly assist cities named in the top ten to attract higher volumes of business and commercial property investment. By encouraging growth in regional areas as well as in Britain’s traditional business hubs, the UK could see economic recovery stabilise and smaller cities play an instrumental role in strengthening the country’s financial foundations.
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