EDINBURGH and Aberdeen are among the top ten cities in the UK in which to live and work, according to a new report.
The capital and the Granite City were said to be among the best places for new businesses, job creation and work-life balance, as well as centres of skills development.
Both have improved their rankings on the Demos-PwC Good Growth for Cities Index since the start of the economic downturn, with Edinburgh now placed sixth overall while Aberdeen is in ninth place out of 42 cities.
Glasgow has also moved up the table, although it remains in the bottom half of the list - climbing two places to 25.
The index found all three main Scottish cities are outperforming the UK in terms of jobs, skills, income and environment - four of the ten economic and social factors which combine to make the Good Growth for Cities Index.
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Aberdeen harbour
The index found all three main Scottish cities are outperforming the UK in terms of jobs, skills, income and environment - four of the ten economic and social factors which combine to make the Good Growth for Cities Index.
However Scotland's poorest health record remains a millstone round the country's neck, with all cities at or below the UK average.
David Brown, Head of Government & Public Sector for PwC in Scotland, said: "Scotland's cities are in a stronger position today than prior to the financial downturn, and that is thanks to the country having continued to invest in jobs and skills.
"This leaves our cities better-placed to benefit from the increases in large-scale investment as Scottish and UK government initiatives, such as City Deals, continue to roll out across the country.
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"There remain challenges in our cities, however. There is a widening gap between earnings and house prices, which keeps owner occupier rates down. And Scotland continues to score either at or below average when it comes to health. These indicators are a reminder that to enjoy 'good growth' we need to focus on alleviating long-terms sickness as well as job creation and new business formation.
"To secure further growth, the public sector, business and the higher education institutions must collaborate effectively, to ensure our cities are 'investor ready', while focusing on achieving good and inclusive growth."
Glasgow has climbed in the rankings
The study found there has been an improvement in work-life balance, as defined by the percentage working more than 45 hours per week, and a strong performance in skills improvements across all Scottish cities.
Across the UK this year's index shows a continuing gap between the highest performing cities of Oxford and Reading and the lowest ranking, Swansea and Sunderland.
However even the cities towards the bottom of the index have improved significantly with Swansea demonstrating the greatest improvements in employment and environmental factors.
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The study found Edinburgh and Glasgow have increased their scores by 0.31 and 0.45 respectively since 2005-07, well ahead of the UK average increase of 0.29, with the rise driven by an improvement in skills among 25 to 64-year-olds.
Glasgow has seen a strong improvement in new businesses, jobs and health while Edinburgh has also seen a large improvement in new businesses compared with 2005-07, although the city has seen a widening of the gap between house prices and earnings.
Edinburgh remains on top
Lindsay Gardiner, regional chairman, PwC Scotland, added: “Edinburgh remains one of the best cities in the UK in which to live and do business. The recent announcement of the £1.3 billion City Deal for the region will only help the city futureproof itself in a world being rapidly altered by technology.
“While Edinburgh continues to perform above average in fields like jobs, income and skills, this year’s Good Growth for Cities Index highlights some challenges, not least of which is housing affordability. This provides evidence that Edinburgh is paying the price of its success.”
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