Birmingham

Birmingham scores 959 on the UK Local Growth Index, placing it 258th of 361 local authorities and 41 points below the UK benchmark of 1,000. It ranks 3rd of 7 authorities in its county grouping, sitting 5 points above the county score of 954, though 6 points below the West Midlands regional score of 965. Across all four pillars, Birmingham's companies score below the UK benchmark, with Investment the closest to the national average in relative rank terms.

  • Top pillar: Investment
  • Biggest opportunity: ESG
  • 83,318 active companies

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Birmingham's composite score of 959 is built from four pillars: Innovation, Scaling, Investment and ESG, weighted at 30%, 30%, 30% and 10% respectively.

The index measures the characteristics of active companies in each authority, with corporate groups counted once. Because each score is averaged across those companies rather than summed, a large authority with many companies is compared on the same footing as a smaller one, making this a fair comparison between authorities of very different sizes.

The UK benchmark is set at 1,000, meaning a score of 959 indicates that Birmingham's companies are, on average, somewhat less active on the index's measures than the national picture. The likely range of 955 to 963 shows how much the score could move with a slightly different mix of companies; a score is only published when that range is narrow enough to rely on.

West Midlands

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%.

  • Innovation 30%959Below average nationally
  • Scaling 30%971Well below average nationally
  • Investment 30%942Average nationally
  • ESG 10%973Well below average nationally

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Pillar breakdown

How Birmingham's composite score of 959 is built up, pillar by pillar.

Innovation

959

Below average nationally

−41 points against the UK · Likely range 953–965 · 30% of the composite

Innovation captures patents, academic spinouts, R&D grant value, innovative sector tags and IS-8 sector classifications. Birmingham ranks 225th of 361 authorities on this pillar, scoring 959 and sitting 41 points below the UK benchmark, outperforming 37.7% of authorities. That places its companies in the lower half of the national distribution on patent activity, spinout links, R&D grants and innovative sector presence.

The 5 measures behind this pillar

  • Patents25%See the data on Beauhurst

    Granted patent families filed in the last 20 years, held anywhere in the corporate group (capped, log scale).

  • Academic spinouts25%See the data on Beauhurst

    Whether the company is a university spinout.

  • R&D grant value25%See the data on Beauhurst

    Value of R&D grants received in the last five years: Innovate UK, EU programmes and other grants for R&D (capped, log scale).

  • Innovative sectors15%See the data on Beauhurst

    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.

  • IS-8 sectors10%See the data on Beauhurst

    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

971

Well below average nationally

−29 points against the UK · Likely range 963–979 · 30% of the composite

The Scaling pillar measures scaleup status, headcount growth and accelerator participation. At 971, Birmingham's Scaling score is 29 points below the UK benchmark, and it ranks 291st of 360 authorities, outperforming only 19.2%. That ranking indicates its companies are adding headcount and achieving scaleup status at a rate noticeably below the national average.

The 3 measures behind this pillar

  • Scaleups45%See the data on Beauhurst

    Whether the company is a 20% scaleup (Beauhurst high-growth signal).

  • Headcount growth45%See the data on Beauhurst

    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.

  • Accelerator10%See the data on Beauhurst

    Whether the company has attended an accelerator.

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

942

Average nationally

−58 points against the UK · Likely range 933–951 · 30% of the composite

Investment covers equity raisers, the amount of equity raised and first-time raisers, all over the last five years. Birmingham scores 942 on this pillar, 58 points below the UK benchmark, yet ranks 186th of 360 authorities and outperforms 48.3% of them. In relative rank terms this is Birmingham's strongest pillar, suggesting its companies' equity-raising activity sits closer to the middle of the national distribution than its score gap alone might imply.

The 3 measures behind this pillar

  • Equity raisers40%See the data on Beauhurst

    Whether the company raised equity in the last five years.

  • Equity raised40%See the data on Beauhurst

    Amount of equity raised in the last five years (capped, log scale).

  • First-time raisers20%See the data on Beauhurst

    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

973

Well below average nationally

−27 points against the UK · Likely range 967–979 · 10% of the composite

ESG measures clean energy activity, other green activity, environmental accolades, social and governance signals, and a not-for-profit proxy. Birmingham scores 973 on ESG, 27 points below the UK benchmark, ranking 292nd of 361 authorities and outperforming 19.1%. Despite having the smallest points gap to the benchmark of any pillar, its rank places it among the lower fifth of authorities nationally on these measures.

The 5 measures behind this pillar

  • Clean energy30%See the data on Beauhurst

    Active in clean or renewable energy, or clean technology.

  • Other green activity20%See the data on Beauhurst

    Active in green buildings and infrastructure, green transport, or sustainable farming and food.

  • Environmental accolades20%See the data on Beauhurst

    Has an environmental accolade, including completed Innovate UK clean growth grants.

  • Social and governance15%See the data on Beauhurst

    Has a gender pay equality signal from a report in the last five years, a director gender equality signal, or a social accolade.

  • Not-for-profit proxy15%See the data on Beauhurst

    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.

Compared to West Midlands

The chart below compares Birmingham's composite score and pillar scores against neighbouring authorities in the West Midlands region.

Dots share one axis across the site. The line marks the UK benchmark of 1,000; differences are in points.

Frequently asked questions

Common questions about Birmingham's Local Growth Score and how it's calculated.

Read the methodology
What is Birmingham's Local Growth Index score?

Birmingham scores 959 on the UK Local Growth Index, placing it 258th of 361 local authorities and 41 points below the UK benchmark of 1,000.

How does Birmingham compare to other West Midlands authorities?

Birmingham ranks 19th of 30 authorities in the West Midlands region, scoring 6 points below the regional average of 965. Within its county grouping it ranks 3rd of 7, sitting 5 points above the county score of 954.

Which pillar is Birmingham strongest on?

In rank terms, Investment is Birmingham's strongest pillar: it ranks 186th of 360 authorities and outperforms 48.3% of them, making it the closest to the middle of the national distribution of any of its four pillars.

How many companies are counted in Birmingham's score?

The index counts 83,318 active companies in Birmingham, with corporate groups counted once rather than as individual registered entities.

What does the UK benchmark of 1,000 mean?

The UK as a whole scores 1,000, so any authority above 1,000 is performing above the national average and any authority below it is performing below. Birmingham's score of 959 places it 41 points below that benchmark.

What is Birmingham's Innovation score and what does it measure?

Birmingham scores 959 on Innovation, 41 points below the UK benchmark, ranking 225th of 361 authorities. The pillar captures patents, academic spinouts, R&D grant value, innovative sector tags and IS-8 sector classifications across local companies.

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.

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