East Midlands ranked above UK average for transport and income distribution

Six of the seven East Midlands cities included in PwC’s Good Growth for Cities Index are out-performing the UK average on delivering against the public’s priority on transport, which measures the average commuting time to work, as the UK improves on work-life balance and hybrid working following the pandemic. 

Additionally, Derby, Leicester, Lincoln and Peterborough perform ahead of the UK average for income distribution, measured by the ratio of median to mean income, an indicator of wealth equity.

The Demos-PwC Good Growth for Cities Index ranks 50 of the UK’s largest cities (generally considered those with populations of at least 350,000 people), plus the London boroughs as a whole, based on the public’s assessment of 12 economic measures, including jobs, health, income, safety and skills, as well as work-life balance, housing, travel-to-work times, income equality, high street shops, environment and business startups. 

The analysis shows that East Midlands cities score in line with the UK average in health, work-life balance, new businesses and safety. Indicators identified for improvement include income, high streets and affordability of housing, where the East Midlands achieved the lowest scores.

Overall, weaker economic activity is expected in the East Midlands compared to the rest of the UK in 2023 and 2024. In 2023, the East Midlands economy is expected to contract by 0.06% in 2023, compared to growth of 0.05% in the UK as a whole, and in 2024 the East Midlands will grow by 0.88% compared to growth of 0.99% overall in the UK.

Derby

Derby is ranked 24th out of 50 in this year’s analysis, dropping slightly from 23rd in 2022. The city performs above the UK average on jobs, transport, skills in over 25s, income distribution and safety indicators, and is in line with the UK average on income, health, work-life balance, skills for 16-24 year olds, affordability of housing, the environment and high streets.

The only area for improvement is new businesses and Derby is the only East Midlands city to have just one indicator highlighted for improvement, showing that the city is experiencing overall good growth.

Leicester

Leicester is the highest performing city in the East Midlands, and comes 16th in the index. It continues to perform well for overall economic growth, and was also the highest performing East Midlands city in last year’s analysis. Leicester scores above the UK average in work-life balance, new businesses, transport, skills across all age groups, income distribution and safety, and is in line with the UK average on jobs, health, owner-occupier rates and the environment.

Areas for improvement are income, affordability of housing and high streets.

Lincoln

Lincoln is ranked 36th out of 50 in this year’s analysis,  decreasing slightly from 35th in 2022. The city performs above the UK average on owner-occupier rates, transport and income distribution, and is in line with the UK average on jobs, health, work-life balance, affordability of housing, skills, safety and high streets.

Areas highlighted for improvement are income, new businesses and the environment. 

Northampton

Northampton is the lowest performing city in the East Midlands, ranking 42nd out of 50. The city performs above the UK average on health, new businesses, owner-occupier rates, transport and the environment, and is in line with the UK average on income, work-life balance, affordability of housing, skills in the over 25s, income distribution and safety. 

Areas highlighted for improvement are jobs, skills for 16-24 year olds, and high streets. 

That said, Northampton is forecast to grow the most in the East Midlands in the next two years. The city is expected to grow by 0.21% in 2023 and 0.98% in 2024, which is the seventh highest growth rate of the 50 cities included within our analysis. This is in stark contrast to the worst performing city in the region, Lincoln, which has the 42nd  highest growth rate in 2023 (-0.25%).

Northampton has a high concentration of its activity within the transportation and storage industry. This is estimated to be a sector of notable growth in coming years, which somewhat explains Northampton’s predicted strong growth in 2023.

Nottingham

Nottingham is ranked 36th out of 50 in this year’s analysis, decreasing slightly from 34th in 2022. The city performs above the UK average on jobs, transport and safety indicators, and is in line with the UK average on health, affordability of housing, owner-occupation rates, transport, skills, income distribution, the environment and high streets.

Areas highlighted for improvement are jobs, income and new businesses.

Peterborough 

Peterborough is ranked 23rd out of 50 in this year’s analysis, and was the second most overall improved UK city included in this year's Index. The city performs above the UK average on health, transport and income distribution, and is in line with the UK average on, jobs, income, work-life balance, new businesses, affordability of housing, owner-occupier rates, skills for the over 25s, the environment and safety. 

Areas highlighted for improvement are skills (16-24) and high streets.

Alex Hudson, Market Senior Partner for PwC East Midlands, said:

“The outlook in the East Midlands is a positive one, and it’s pleasing to see our cities generally fairing well in our analysis this year. Aligned with the government’s Levelling Up agenda, local government and employers have a part to play in providing opportunities for people to grow their businesses, careers and skills right across the region. 

“That said, the report highlights some areas in which the East Midlands performs behind the UK average, including income and house prices, as well as weaker predicted economic growth. This should be used as a map of opportunity, showing where continued support can have a real impact on improving aspects identified by the public as priorities. The East Midlands will also benefit from the recently announced investment zones, where we will receive £80m of support over five years.

“The 2022 PwC economic outlook analysis showed that the region's economic output remained around 3.3% smaller than pre-pandemic levels and identified the Midlands as one of the regions with the most potential for growth. One of the ways we will achieve sustained improvements in our economy in the East Midlands is continued investment in automotive and aerospace, medical and agriculture technologies that will provide economic benefits and opportunities for growth.  

“PwC is continually investing in the East Midlands, using our convening power to bring together businesses and government to make positive changes for the region. Working collaboratively and focussing on some key areas for growth, such as the skills agenda, will lead to improvement across the board for the region.”