York helps drive Northern economic growth - PwC Good Growth for Cities Index 2025

• York tops the list of 50 UK cities in PwC’s 2025 Good Growth for Cities Index, which measures a range of social and economic indicators.

• Positive moves seen across the North: Preston ranks 15th, Wakefield and Castleford climb six places; Hull improves by seven places, and Sheffield by nine.

• The Index has ranked York in first place for 2025, having assessed key social indicators including skills, housing, transport, health, jobs and work life balance. The city climbed six places from last year to claim the top spot. 

The Demos-PwC Good Growth for Cities Index (‘the Index’) ranks 50 of the UK’s largest cities, excluding London, based on both the public’s assessment and the actual performance of 12 economic measures, which this year, in order of public importance, were: income; income distribution; safety; work-life balance; health; jobs; housing; environment; transport; high streets; skills and new businesses. The higher the city scores on the public's top priorities, the better the city performs on the Index.

Financial measures such as income and jobs have previously led in their importance to the public by a wide margin, but results from this year’s survey reveal a rise in the importance of non-financial measures. Skills, high streets, housing and transport have all risen on the public agenda. Income and income distribution remain the top two priorities but have seen their sharpest year-on-year decline.  

The North West’s performance

The highest performing city in the region is Preston, 15th in the index, whereas the lowest performing city is Liverpool, ranking 45th.

All but one North West city performed above average for both work-life balance and house price to earnings ratio. Preston performed below the average for work-life balance and Manchester (44th) performed in line with average for house price to earnings. Preston is the only North West city that does not perform below the UK average for health and safety indicators.  

Yorkshire and the Humber’s performance

In addition to York’s Index-topping performance, Wakefield and Castleford climbed six places to 23rd, with Hull only two places behind, having climbed seven places to 25th. Leeds climbed three places to 27th whereas Huddersfield fell six places to 31st. Sheffield also climbed an impressive nine places to reach 34th. The lowest performing city was Bradford in 49th.

The seven cities in Yorkshire and the Humber performed well on work-life balance and house price to earnings, with all cities except York and Sheffield scoring significantly above the UK average. With transport, six of the seven cities score above or in line with the UK average, while only Sheffield comes in below. Four cities saw their most positive Index increase related to skills. Skills for 16-24 year olds saw the biggest improvement in Index performance in both Bradford and Sheffield, and Skills for the over 25s saw the largest improvement in Huddersfield and Leeds.  

The North East's performance

This year, the highest performing city in the North East region was Newcastle (42nd), replacing Sunderland (43rd) due to positive performance particularly in transport, house price to earnings ratio and work-life balance. The lowest performing city was Middlesbrough & Stockton, ranking 47th. 

All three North East cities perform above the UK average for house price to earnings ratio. For work-life balance, transport and income distribution, all cities perform at, or above the average. All three cities performed below the average for safety, skills (25 years+), owner occupation rates and new businesses.

Emma Suchland, PwC’s Regional Market Leader for the North, said: 

"Our latest research really highlights just how varied the economic landscape is across the North West, Yorkshire, and the North East—and the unique opportunities each area has to offer. To make the most of these strengths, we need local strategies that play to each region’s advantages. For example, the North East is a global leader in industrial manufacturing, Manchester’s creative and tech sectors are booming, and Yorkshire is fast becoming a top spot for financial and business services outside London.

“For growth to be truly successful, we have to remember how closely economic progress is tied to social wellbeing. People need good jobs, thriving communities, accessible services, reliable transport, and a real sense of wellbeing. At the same time, businesses depend on a healthy, skilled workforce, strong infrastructure, and a stable environment to succeed. That’s why local growth plans should bring together investments across all these areas, making sure growth is inclusive and benefits everyone. Achieving this will take ongoing collaboration between local authorities, businesses, and educators."

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 UK, 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.”

UK growth likely to remain subdued

Although economic activity grew fast in the first half of the year, it is anticipated to decelerate in the second half. With this national backdrop, Brighton, Edinburgh, Manchester, and Liverpool are expected to outpace the UK average growth rate of around 1.2% this year. These cities have successfully merged economic diversification with investments in infrastructure and innovation. Manchester and Liverpool demonstrate how strategic public and private investments, backed by devolution and targeted sector strategies, can enhance long-term growth potential. 

Carl Sizer, Chief Markets Officer 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.”

About the Good Growth for Cities Index 

• The Demos-PwC Good Growth for Cities Index was established in 2011 and is updated annually. 

• In recognition of its unique scale and economy, London is not included in this year’s Good Growth Index. The Index looks beyond core economic indicators (such as GDP) and instead considers broad measures of economic wellbeing to measure success. 

• The Index measures the performance of 50 of the UK's largest cities, each typically having a population of at least 340,000, excluding London. It also assesses 37 Rural Areas, based on the prior Local Enterprise Partnerships (LEPs) definitions, and 16 Combined Authorities and city regions, using a set of 12 factors deemed most crucial by the public for economic well-being. These include jobs, health, income, safety and skills, as well as work-life balance, housing, travel-to-work times, income equality, high street and shops, environment and business start-ups. More details on the methodology can be found in the report here