The Scotsman

Edinburgh ‘better than London for investors’

● Glasgow also makes top ten in league table drawn up by building consultanc­y

- By PERRY GOURLEY

Edinburgh has bested the likes of London, Oxford and Cambridge to be named as Britain’s most attractive city for inward investment.

A report published today by global consultanc­y Arcadis has declared the Scottish capital has the potential to rival any city in the world because of its strong economy, highly skilled workforce and innovative culture.

But the study has urged decision makers to invest heavily in areas such as affordable housing to avoid Edinburgh being overtaken by other major centres.

Glasgow ranked eighth in the survey of 24 key cities in the UK, one place behind London. Oxford was second in the league table.

Edinburgh is the most attractive city in the UK for inward investment but will need to invest heavily in areas such as affordable housing to avoid being overtaken by other major centres, according to a new report published today.

The Scottish capital’s strong economy, highly skilled workforce and innovative culture are among factors which have placed it ahead of the likes of London, Oxford and Cambridge in the report by global consultanc­y Arcadis. Glasgow comes in at eighth in the league table of 24 key cities in the UK, just behind London.

Although Edinburgh currently tops the UK rankings and the report says it has the potential to rival any city in the world, it also warns that it needs high levels of investment to accommodat­e continuing growth. Failing to deal with the added pressures on housing and infrastruc­ture could see the city lose ground to others.

“Edinburgh needs to ensure that the speed of its economic growth doesn’t surpass its ability to invest in housing and infrastruc­ture,” the report says.

”While it benefits from having strong business fundamenta­ls already in place, some additional improvemen­ts – including more affordable housing and an environmen­t that fosters invention and the creation of patents – could mean that its strength as a magnet for investment rivals that of any other city worldwide.” The report also cites improving air quality in the city as a key lever for attracting investment.

The “Investing in Britain: Cities Built for the Future” report ranks 24 cities based on their performanc­e across six key areas seen as crucial for future inward investment and growth potential. They include business environmen­t, workforce and skills, infrastruc­ture performanc­e, housing, place and city brand.

The report said key factors for Glasgow to be able to attract more inward investment include improving school performanc­e and capacity.

Graham Hill, Arcadis executive for Scottish cities, said although Edinburgh is performing well, it could be world-leading if some fundamenta­l issues are addressed.

“Truly investable cities are not only those with the most mature economies but, like Edinburgh, have to demonstrat­e they can also offer a healthy and attractive place for people to live. It is imperative that Edinburgh’s future growth isn’t constraine­d by a lack of affordable housing or transport not keeping pace with changing demographi­cs and new technology.” Hill added that every city region in Scotland needs to look at “what it has to offer, and how it can make the most of it”.

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