Derby edges region’s core cities in new growth report

Derby has been ranked ahead of other East Midlands core cities in a new index measuring growth.

The city has been ranked 24th in the latest Demos-PwC Good Growth for Cities Index, ahead of Leicester (32nd) and Nottingham (40th).

The annual ranking of 50 of the UK’s largest urban areas, also places Derby ahead of major cities, including Leeds, Newcastle, Manchester, Liverpool and Birmingham.

In comparison to the 2024 rankings, Derby has held relatively steady, dropping just one place  – and performing around the UK average on a number key criteria.

The report’s authors said: “Local and regional economies across the UK are at a turning point.

“A decade-long industrial strategy has been set in motion and a renewed focus on local growth has created space for action – but progress requires clear, strategic choices.

“The challenge is to align economic ambition with public value: prioritising the foundations that support thriving communities and businesses, focusing on local strengths with real economic potential, and delivering outcomes that people can see and feel.”

The annual Good Growth for Cities Index looks beyond GDP and covers broad economic measures.

These include 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 start-ups.

In the report, Derby was ranked as above average on jobs, housing, transport and income distribution.

It was ranked average on income, health, new businesses, skills, environment, safety and high street shops.

The only measurement to be ranked below average was work-life balance.

As well as analysing each city, the report also looked at the public priorities across each region.

For the East Midlands, it said that more emphasis was being placed on income, housing and environment – while jobs had a lower-than-average weighting.

“This is a change from last year when the region’s focus on jobs was above average,” the report added.

The report concluded: “Global tensions, persistent inflation and fiscal constraints are creating difficult conditions for growth.

“Cities must rise to the challenge with clear, strategic choices and a relentless focus on long-term outcomes.”

Overall, Derby is the second highest ranked East Midlands city, sitting four places behind Lincoln, in 20th.

Alex Hudson, market senior partner for the East Midlands at PwC, said: “The index findings present a compelling narrative of transformation and opportunity within the East Midlands.

“The emergence of Derby and Lincoln as employment hubs underscores the region’s growing influence in the UK’s economic landscape.”

To read the Demos-PwC Good Growth for Cities Index in full, visit https://www.pwc.co.uk/industries/government-public-sector/good-growth.html.