Britain’s best-performing local economies revealed in “UK’s most comprehensive growth index”
A new national benchmark measuring economic performance across every UK local authority has launched today, offering a comprehensive picture of where growth is happening across the country.
The Local Growth Index, developed by private company intelligence provider Beauhurst, analyses verified data from every active UK business. Designed for policymakers, investors and business leaders, it provides a consistent way to compare local economies and identify where growth is emerging.
The launch comes as economic growth remains a national priority, with the Government pledging to drive growth in every part of the country and local leaders taking on greater responsibility for delivering prosperity through devolution. Nationally significant developments, including the establishment of Number 10 North, underline the growing ambition to bring economic opportunity closer to home. Yet until now, there has been no consistent benchmark for comparing the performance of local economies across the UK using live business data, leaving policymakers to pursue growth in every postcode without a reliable way of knowing which postcodes are actually growing.
What the Local Growth Index reveals
The findings paint a more nuanced picture of the UK’s North–South divide, with regional average scores much closer than the overall rankings suggest.
While southern authorities dominate the top ten, average scores range from 1,008 in London to 970 in the West Midlands. North West Leicestershire, Aberdeen City and North Warwickshire also feature among the UK’s top ten areas for scaling, demonstrating that business growth is far from confined to the South. The Index also reveals that innovation does not always translate into investment, with Test Valley ranking eighth nationally for innovation but 27th for investment. Meanwhile, the City of London leads on scaling, while the Orkney Islands and Isles of Scilly top the sustainability rankings, highlighting the different strengths of local economies across the UK.
Leaders highlight the value of better growth data
Rachel Wood, growth hub manager at Staffordshire County Council, said: “Beauhurst’s Local Growth Index gives us a unique ability to understand and track growth on a local level based on actual businesses that are operating here. This will help us measure the success of our investments and initiatives and support future investment.”
John Pearce, CEO of Made in Britain, said: “In every postcode, when manufacturing grows, local people win. Wherever goods are made, the local community will prosper, with good growth that creates more meaningful employment and a more vibrant local community. The same is true in reverse, with businesses seeking out those areas that offer the greatest opportunities for success. The better-informed intelligence of the Local Growth Index will undoubtedly reveal opportunities that conventional national statistics may overlook and reveal the many benefits that manufacturing can bring.”
Charlie Mercer, deputy executive director of Startup Coalition, said: “For those wondering how we achieve growth in every postcode, the Local Growth Index is a great place to start. Entrepreneurs are unlocking opportunity across the length and breadth of the UK, as the Index shows. However, location matters, and not just because of geography or proximity to London. Decisions made by policymakers in every part of the country can influence the success of startups in their backyard – we hope this Index helps those in power to see where is doing things well, to make sure best practice spreads to every corner of the country.”
A consistent benchmark for investors and policymakers
Callum Newton, associate director of Beauhurst Insights, said: “Growth is increasingly being delivered locally, yet until now there has been no verifiable way to compare the performance of different places using live business data.
“The Local Growth Index provides a consistent benchmark that allows investors, policymakers and local leaders to understand where strengths exist, where momentum is building, and where additional support could have the greatest impact. It truly is the UK’s most comprehensive growth index and the first of its kind.”
The full rankings and methodology are available at www.localgrowthindex.co.uk.