Birmingham has been ranked the UK’s leading city for investment growth potential in the latest Investor Confidence Index from Irwin Mitchell, produced with analysis from the Centre for Economics and Business Research (Cebr).
The Q3 2026 index assesses 48 of the UK’s largest locations against ten economic indicators covering growth potential, local skills and local infrastructure. Birmingham scored 59.6 for Growth Potential, putting it first in the UK and more than six points ahead of London in second place.
Birmingham also retained its position as the fourth-highest ranked UK location overall for investment attractiveness, behind London, Edinburgh and Greater Manchester.
The Growth Potential measure looks at forecast economic growth, employment growth, rates of new business creation and proximity to Freeports and Investment Zones, providing an indication of where the conditions for future investment and expansion are strongest.
The report highlights Birmingham’s position within the West Midlands Investment Zone as one factor supporting its performance, alongside an improvement in the city’s business creation rate. Birmingham’s Growth Potential score places it more than six points clear of London on this measure.
For investors, that growth potential is backed by the scale of the wider West Midlands economy and its established industrial base.
The report identifies Birmingham as sitting at the centre of the UK’s largest manufacturing cluster. The West Midlands manufacturing sector generated £24 billion in GVA in 2023, while manufacturing accounts for a greater share of employment in the region than the national average.
Businesses locating in Birmingham can also draw on one of the UK’s largest labour markets. The city’s economically active population ranks third among the 48 locations assessed, giving investors access to a labour pool exceeded only by London and Greater Manchester in the index.
The findings add further evidence to Birmingham and the West Midlands’ proposition for companies looking for a location with the scale, talent, industrial strengths and long-term growth potential to support their next stage of investment.
Find out more about investing in Birmingham and the West Midlands.
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Source: https://www.irwinmitchell.com/