º£½ÇÊÓƵ

Cardiff has fallen in an influential index of the health of º£½ÇÊÓƵ cities with Swansea improving slightly.

The annual Demos-PwC Good Growth for Cities Index see the capital dropping four places to 17th on last year, with Swansea rising one place to 41st.

The index ranks 50 of the º£½ÇÊÓƵ’s largest cities out of London based on both the public’s assessment and the actual performance of 12 economic measures. These measures include jobs, health, income, safety and skills, as well as work-life balance, housing, transport, income equality, high street and shops, environment and business start-ups.

Cardiff and Swansea both perform well on metrics relating to income distribution, owner occupation and work-life balance, but fall behind the º£½ÇÊÓƵ average for income, health and new businesses. They perform relatively similarly for over half of the variables included within the index, suggesting that they face many of the same challenges.

The key differences are that Swansea is deemed safer – measured by violent crime, weapons and drugs offences - than the º£½ÇÊÓƵ average and Cardiff less safe. However, PwC said Swansea has a significantly lower environment score than the º£½ÇÊÓƵ average while Cardiff is scored above.

The index also includes an analysis of 16 combined authority areas in the º£½ÇÊÓƵ. The Cardiff Capital Region - made up of the ten local authorities of south east Wales is down two places on last year’s index to 6th, with the Swansea Bay City Region - made of the local authority areas of Carmarthenshire, Pembrokeshire, Swansea and Neath Port Talbot - is down one place to 10th. Inverness and Highland City Region is ranked first.

Stuart Couch, market senior partner for PwC in Cardiff, said:“Our Good Growth for Cities Index shows us what is important to the public, and how different cities perform against those priorities. It’s a powerful tool for identifying the conditions that get in the way of meaningful, tangible improvements in our lives and communities.

“There’s real potential for growth in Wales, with the strength of the financial services and insurance sector, a high level of graduate education and the natural resources we’ll need to transition to a greener economy. However, Wales’ productivity, measured by output per hour worked, lags behind the rest of the º£½ÇÊÓƵ, and that lies at the heart of the challenge. Alongside improving some of the metrics that hold growth back - health, income and the rate at which new businesses are started - addressing stagnant productivity levels will have a tangible effect on the lives of people in Wales.â€�

York tops the index, with Edinburgh rising to second place and Bristol ranked third. These cities scored highly across high streets, skills, and jobs which are key indicators of prosperity that the public increasingly values. York ranked among the top three cities for both high street and jobs.

Walsall is ranked bottom of the index, followed by Bradford and Birmingham

PwC research indicates a convergence in the public’s priorities this year, with financial considerations becoming less dominant in favour of tangible, local, and essential concerns such as high streets and shops, skills, housing, and transport.

Rachel Taylor, government and health industries leader at PwC, said:“Our research indicates that ongoing financial pressures are pushing people to prioritise things that improve their quality of life and future prospects. Bustling high streets, new businesses, and reliable transport links build confidence and optimism. To strengthen local and regional economies in the º£½ÇÊÓƵ, we need to concentrate on the fundamental elements that support thriving communities and businesses. This involves maximising local strengths with genuine economic potential and achieving noticeable results.

“Good growth strategies should recognise the link between economic and social foundations. People need secure jobs, accessible services, reliable transport, and a sense of wellbeing to thrive, while businesses rely on healthy, skilled populations and stable infrastructure to grow.�

PwC said economic growth can be driven by either expanding the workforce or by utilising labour and capital more efficiently. Certain cities, like Norwich, are expected to grow primarily through population increases, which in turn boost demand and workforce size. However, this does not always translate to improved living standards or higher output per person.

Carl Sizer, chief markets oifficer at PwC, said:“The cities and regions making the most progress are those that align their sector priorities with local strengths and invest in essentials like housing, transport, digital infrastructure, and skills. They ensure that the priorities of communities, employers, and key institutions are in sync. A strong economic identity is crucial, understanding what a place stands for, its strengths, and growth plans is vital for local leaders, investors, businesses, and residents alike. Clarity helps direct decisions, focus efforts, and make a strong case for investment.

“With these foundations, local growth strategies become more than policy documents. They serve as a framework connecting short-term efforts with long-term goals, organising choices to support resilience, opportunity, and inclusive growth. To stay relevant, these strategies need to be active and adaptable, regularly updated, transparently tracked, and based on clear insights into what’s working and what needs change.�