Manchester's mix of education and entrepreneurship means only Oxford and Cambridge score higher for economic vitality.

So says Lambert Smith Hampton's UK Vitality Index for 2018 which reveals that whilst Manchester has not managed to knock the world-renowned university cities of Cambridge and Oxford off the top spot, it has moved from ninth to third in the rankings.

Manchester's ranking has increased as a result of the workforce seeing wages increase by 8% over the last two years, compared to the U.K. average of 4%. Manchester is also among the cities with the highest number of new businesses per capita.

The LSH Vitality Index assesses the U.K.’s 66 largest towns and cities outside London to identify which are best positioned for growth and provide the greatest opportunities for businesses expansion.

The results are based on the analysis of 20 datasets, with each location ranked within six separate sub-indices: most productive, fastest growing, most entrepreneurial, best educated, greenest and rising affluence.

Overall, the top 10 towns and cities in the UK Vitality Index 2018 are:

1. Cambridge

2. Oxford

3. Manchester

4. Brighton & Hove

5. Edinburgh

6. Guildford

7. Bristol

8. Reading

9. Milton Keynes

10. St Albans

 “While Cambridge has stolen the headlines again, the most striking result this year is the meteoric rise of Manchester," LSH Senior Analyst Isabel Watterson said.

“The unofficial capital of the Northern Powerhouse is really cementing its position as the U.K.’s second city, boasting a growing reputation as a hotbed for creative talent and new businesses. Manchester also led a tangible improvement across the Northern Powerhouse, with Leeds, Sheffield and Liverpool’s rankings all improving upon last year.”