Cardiff has retained its status as one of the United Kingdom's most appealing cities for investors, while Swansea finds itself near the bottom of a major new national league table. The findings come from the latest UK Attractiveness Index for 2025, published by law firm Irwin Mitchell and the Centre for Economics and Business Research (Cebr).
Welsh Cities: A Tale of Two Economies
The comprehensive study assessed 48 major UK locations, ranking them on criteria including growth potential, local skills, and infrastructure. Cardiff maintained its strong position at 13th place nationally, with an overall score of 38.9. The Welsh capital actually improved its standing from the previous year's index, securing 11th place for growth potential despite a slight easing in forecasts for Gross Value Added (GVA) and employment.
In stark contrast, Swansea was ranked 47th out of 48, making it the second least attractive city for investment in the UK. This represents a marginal improvement from its bottom-place finish in the 2024 index, but it remains ahead of only Belfast in the overall standings.
Drivers of Success and Areas for Improvement
The report highlights that Cardiff's sustained appeal is largely driven by continuously improving qualification levels among its workforce, which bolsters the city's talent pool and competitive edge. Bryan Bletso, Head of International at Irwin Mitchell, noted the city's specific strengths. "Cardiff is showing further progress this year," he said. "Its strengths in public sector research and creative industries are creating real opportunities for growth and attracting attention from overseas investors."
For Swansea, the low ranking indicates significant challenges in the metrics used by the index. The city sits just above Belfast and below Rotherham (46th), Wakefield (45th), and Hull (44th). The research shows that 46 of the 48 cities analysed improved their scores compared to last year, suggesting a nationwide uplift in investment attractiveness that Swansea has struggled to match fully.
National Outlook and Policy Recommendations
At the UK level, London retained the top spot, followed by Edinburgh, Oxford, and Birmingham. The biggest climber was Solihull, which rose an impressive 11 places to 22nd. Bryan Bletso emphasised the UK's broader advantages, stating, "The UK’s enduring competitive advantages shine through – a highly skilled workforce, world-class education, universities and research institutions, and thriving knowledge-intensive clusters."
The report concludes with key policy recommendations designed to maintain and spread economic vitality. These include:
- Deepening workforce skills and fostering greater research collaboration.
- Using infrastructure and devolved investment tools to share the benefits seen in London across other UK regions.
- Prioritising policy stability and cultivating strong international trade relationships to uphold global competitiveness.
With a continued focus on delivery and effective local governance, analysts express confidence that the UK will remain a leading global destination for high-quality investment and job creation in the coming years.
