New Demos-PwC Good Growth for Cities Index published

Economic growth is at the heart of the new Labour government’s missions for the country, and ensuring this growth is spread across the country is a key part of the mission. Regional inequality has been high on the political agenda for years, from the previous government’s ‘levelling up’ project to the current government’s commitments to broaden and deepen English devolution.

The latest Demos-PwC Good Growth for Cities Index demonstrates the continuing importance of the regional growth agenda, with differences in cities’ rankings often falling along regional lines. Cities in the South West, such as Plymouth, Bristol, Swindon and Exeter, lead the Index, while the highest improving cities come from a broader range of regions, with cities in the East and Yorkshire – Lincoln, Hull, and York – ranking most improved.

We have seen progress on English devolution over the past decade and a half – we now have twelve areas with mayoral devolution, with plans for more in the works. The latest Demos-PwC Good Growth for Cities Index shows that almost all combined authorities improved their Index scores this year. However, there is significant variance too. The West of England Combined Authority has retained the top spot, performing better than some of the oldest and biggest combined authorities, such as the West Midlands and Greater Manchester Combined Authorities.

This points to the need for the Government to invest not only in further devolution, but in the devolved structures we already have, if it is serious about improving regional inequality. This includes the devolved administrations, with many cities in Wales, Scotland, and Northern Ireland improving their scores since last year. Insights on Swansea and Aberdeen show some of the challenges faced, as well as the progress made.

This report argues that devolution need not follow a ‘cookie cutter approach’, with, for example, newer combined authorities simply replicating original models. In fact, with some of the oldest combined authorities receiving the lowest rankings, newer combined authorities could do well to learn from their mistakes. 

Instead, devolution needs to be place-based, and be informed by local communities. The Demos-PwC Good Growth for Cities Index is a great example of how you can evaluate economic progress in a way that is true to local citizens’ priorities, as they are a key feature of the scoring system, measured through polling. 

But while there is variance between regions on performance in the areas measured, there is little variance between public priorities. The public are united in their top priority, which has increased slightly in importance since last year: income. This sends a clear, powerful message from citizens to government at all levels: national, regional, and local.

Summary of key findings

• Plymouth is the highest performing city in the annual Demos-PwC Good Growth for Cities Index, with Bristol rising to second place and Southampton remaining in third place.
• Cities across the South West region lead the Index, with Plymouth, Bristol, Swindon and Exeter all being among the best performing cities, consistently scoring above the UK average for health & safety and skills.
• The East of England and Yorkshire are home to the highest improving cities – Lincoln, Hull and York.
• House price-to-earnings ratio sees the largest decline across UK cities as people continue to be priced out of living in cities as wage growth fails to keep pace with house prices.
• Raising prosperity across the UK is needed more than ever, says PwC, as research shows growing inequality of access to housing, jobs and education remains a key issue across regions and cities.

Read the report in full here.