Plymouth and Bristol have emerged as the leading cities in the UK based on the latest Demos-PwC Good Growth for Cities Index. This influential index assesses various metrics including life expectancy, job creation, and work-life balance.
The results indicate that Plymouth advanced from sixth place to first, while Bristol climbed two places to secure the second position. The South West region, in general, performed strongly, with Exeter and Swindon also making it into the top ten.
Evaluation Criteria and Index Measures
The Demos-PwC Good Growth for Cities Index evaluates the UK’s 51 largest cities, including the London boroughs, based on eleven distinct measures. These measures encompass factors like house prices relative to earnings, commuting times, and the rate of store openings and closures.
Plymouth’s ascent to the top spot can be attributed to its high scores in work-life balance, income distribution, and employment opportunities. Similarly, Bristol’s impressive performance is driven by its success in job creation, work-life balance, and skills development.
South West Region’s Strong Showing
Apart from Plymouth and Bristol, other South West cities such as Swindon and Exeter also performed well, ranking fourth and sixth, respectively. The region outshines the UK average in health and safety standards as well as skills development.
However, the region lags behind in terms of new business startups and house price-to-earnings ratios, highlighting areas for potential improvement.
Sector-Specific Growth and Future Projections
In 2024, public administration and defence were among the fastest-growing sectors, with a 2.2% growth rate. Significantly, both Plymouth and Bristol are renowned defence hubs.
PwC forecasts suggest that cities with high-growth sectors such as transportation, public sector, and construction are expected to perform well in 2025. Conversely, Plymouth, Bristol, and Swindon may face average economic outlooks as formerly underperforming cities begin to improve.
Public Sentiment and Financial Wellbeing
PwC research indicates a growing public concern regarding financial wellbeing, focusing on income, jobs, and housing. This shift in priorities has negatively affected cities like Oxford and Milton Keynes, which experienced significant drops due to poor performance in income distribution and housing.
The average house price is now over eight times the average earnings, a stark increase from the 1990s when it was four times the average earnings. Cities with significant social housing waiting lists such as London, Birmingham, Manchester, and Newcastle were amongst the lowest performers in this index.
Expert Opinions and Recommended Actions
John-Paul Barker, regional market lead for PwC West of England & Wales, highlighted the strengths and areas for improvement. He stated, “It’s great to see that South West cities continue to perform strongly in the Index; it chimes with the conversations we have with stakeholders and reflects what we see in the vibrant communities that we work in.”
Barker also noted that the high house prices relative to earnings and the rate of new business startups are critical areas that require local solutions. Although these are national issues, local leaders can implement tailor-made solutions to address them.
Wider Implications of Economic Inequality
Rachel Taylor, government and health industries leader at PwC, emphasized the need to raise prosperity across the UK to combat growing inequality in housing, jobs, and education.
She stated, “If we are serious about economic growth as a country we need to provide people and places with the foundations on which they can fuel that growth – access to jobs, skills and education and affordable homes.”
Calls for Devolution and Localised Solutions
The report also spurred discussions about the need for devolution to address economic disparities. The Demos-PwC Index aims to stimulate debate on how local needs and priorities can be better met through tailored local growth plans.
The cross-party think tank Demos highlighted that while the issues are national, the solutions must be local, advocating for devolution policies to be adapted to the specific needs of different regions across the UK.
The Demos-PwC Good Growth for Cities Index has shed light on the economic strengths and weaknesses of the UK’s major cities. Plymouth and Bristol have emerged as frontrunners, showcasing strong performance in key areas such as work-life balance, job creation, and skills development.
However, challenges remain, particularly in the areas of housing affordability and new business startups. Addressing these issues through localised strategies and potential devolution could pave the way for more balanced and sustainable economic growth across the UK.
