The City of London ranks 2nd of 361 UK local authorities on the Local Growth Index, with a composite score of 1,414, placing it 414 points above the UK benchmark. It ranks 1st in London and 1st in its county. Its strongest results come on Investment and Scaling, both of which rank first nationally.
The composite score is built from four pillars: Innovation, Scaling, Investment and ESG, weighted at 30%, 30%, 30% and 10% respectively.
Each score is an average across the authority's active companies, with corporate groups counted once. That averaging means a place with 37,501 active companies can be compared fairly with a much smaller authority, because the score reflects how active local companies are, not the size of the local economy.
The UK as a whole scores 1,000 on the benchmark, so the City of London's composite score of 1,414 places it firmly above that national reference point on every pillar. The likely range for the composite, 1,396 to 1,432, shows how much the score could move with a slightly different mix of companies; it is published here because that range is narrow enough to rely on.
London
Each dot shows the pillar score on a scale where the UK as a whole scores 1,000, marked by the line. The paler band is the likely range. The composite weights Innovation, Scaling and Investment 30% each and ESG 10%.
How City of London's composite score of 1,414 is built up, pillar by pillar.
Innovation
1,296
Well above average nationally
800UK 1,0001,700+
+296 points against the UK · Likely range 1,280–1,312 · 30% of the composite
Innovation measures patents, academic spinout status, R&D grant value, presence in innovative sectors and coverage of IS-8 sectors. The City of London ranks 5th of 361 authorities on this pillar, scoring 1,296, which is 296 points above the UK benchmark, placing it in the top 2% nationally.
Tagged with any industry or buzzword on a curated list of innovative sectors, for example chips, biotechnology, quantum, AI, data, SaaS, FinTech and CleanTech. About 2.5% of companies.
Tagged with any of the eight IS-8 sectors: advanced manufacturing, clean energy, creative industries, digital and technologies, financial services, life sciences, professional and business services, and defence. About 18% of companies.
We publish a score for each pillar, not for the measures inside it. The percentage beside each measure is how much it counts towards the pillar score. Select the lock to see the companies behind a measure on the Beauhurst platform.
Scaling
1,385
Well above average nationally
800UK 1,0001,700+
+385 points against the UK · Likely range 1,362–1,408 · 30% of the composite
Scaling measures whether companies qualify as scaleups, headcount growth over recent years and accelerator attendance. The City of London ranks 1st of 360 authorities here, scoring 1,385, which is 385 points above the UK benchmark: its companies are adding staff noticeably faster than anywhere else in the country.
Annualised three-year employee growth rate over the latest four years of accounts, including group accounts, for companies with five or more employees at the start (capped). All other companies count as zero.
We publish a score for each pillar, not for the measures inside it. The percentage beside each measure is how much it counts towards the pillar score. Select the lock to see the companies behind a measure on the Beauhurst platform.
Investment
1,668
Well above average nationally
800UK 1,0001,700+
+668 points against the UK · Likely range 1,625–1,711 · 30% of the composite
Investment captures equity raisers, the value of equity raised and first-time raisers over the last five years. The City of London again ranks 1st of 360 authorities, scoring 1,668 and sitting 668 points above the UK benchmark, the strongest result across all four pillars in absolute terms.
Whether the company's first equity deal ever was in the last five years. A first-time raiser always counts as an equity raiser too.
We publish a score for each pillar, not for the measures inside it. The percentage beside each measure is how much it counts towards the pillar score. Select the lock to see the companies behind a measure on the Beauhurst platform.
ESG
1,097
Well above average nationally
800UK 1,0001,700+
+97 points against the UK · Likely range 1,083–1,111 · 10% of the composite
ESG measures clean energy activity, other green activity, environmental accolades, social and governance signals and a not-for-profit proxy. At 40th of 361 and 97 points above the UK benchmark, the City of London's ESG score is positive but represents its most modest result relative to the other pillars.
Is limited by guarantee without share capital, a rough indicator of non-profit status.
We publish a score for each pillar, not for the measures inside it. The percentage beside each measure is how much it counts towards the pillar score. Select the lock to see the companies behind a measure on the Beauhurst platform.
Frequently asked questions
Common questions about City of London's Local Growth Score and how it's calculated.
What is the City of London's Local Growth Index score?
The City of London scores 1,414 on the Local Growth Index, placing it 414 points above the UK benchmark of 1,000 and 2nd of 361 UK local authorities.
How does the City of London compare with the rest of London?
The City of London ranks 1st of the 33 London authorities, scoring 381 points above the London regional average of 1,033.
Which pillar is the City of London strongest on?
Investment is its highest-scoring pillar in absolute terms, at 1,668 and 668 points above the UK benchmark, ranking 1st of 360 authorities. Scaling also ranks 1st nationally.
What does the Local Growth Index actually measure?
It measures the characteristics of a local authority's business economy across four pillars: Innovation, Scaling, Investment and ESG. It is not a measure of economic output or GDP.
How reliable is the City of London's score?
The composite score has a likely range of 1,396 to 1,432, which is narrow enough for the score to be published and relied upon.
How many companies are counted in the City of London's score?
The score is based on 37,501 active companies, with corporate groups counted once rather than as individual registered entities.
Explore the data behind the index
Every score on this page is built from real, named company activity, patent filings, fundraisings, spinouts and scaleups. Book a call to see the data behind any authority's score, and how Beauhurst can support your work.
