The two are now pulling clear of the rest of the country on economic fundamentals.

The index shows how elements such as like rising employment, new business formation and increasing skills can improve quality of life measures, such as work-life balance, property prices and health.

The report, published by PwC and Demos, states: “Reading, with Oxford, remains at the top of the index. A substantial gap has opened up between these two cities and the rest, reflecting their continued improvement in jobs, income, skills and new businesses.”

Reading and Oxford even rate above London which ranked 15th.

It is the fifth annual Good Growth for Cities index and measured the performance of 42 of the UK’s largest cities, England’s Local Enterprise Partnerships and the new Combined Authorities against categories defined by the public and business as key to local socio-economic success.

Rather than measuring productivity using GVA, 10 factors including jobs, health, income and skills, work-life balance, house-affordability, travel-to-work times, income equality and pollution, as well as business start-ups (new this year), come up with the ranking.

Nigel Horton Baker, executive director of Reading UK CIC, said: “Reading continues to outperform all the core cities in the UK, particularly in areas such as jobs, health, skills, income and the creation of new businesses.

“While there is room for improvement particularly in areas such as affordable housing, the recent investments in transport, the decision on the future of Heathrow and the town’s developing reputation as a cultural destination will make Reading an increasingly attractive proposition for business in the future.”

© Thames Valley Property No 43 (tvproperty.co.uk)