Edinburgh loses rank in economic list

EDINBURGH has slid down an influential ranking of the economic prospects for more than 100 European cities.

The capital's fortunes were hit hard by the banking crisis, particularly the loss of the headquarters of HBOS, while Glasgow's fortunes have improved.

Edinburgh fell 11 places to 59 on LaSalle Investment Management's annual European Regional Economic Growth Index (E-Regi) report.

Glasgow, however, has nudged up four places to 75th place, one of the few UK cities outside of London to buck a downward trend. London regained its number one spot on the index after it had fallen to seventh on the list last year.

Robin Goodchild, international director for LaSalle, said it was "unavoidable" that Edinburgh's economic prospects and level of employment would be damaged by the headquarters for HBOS moving south after it was swallowed by Lloyds Banking Group.

But he added that the capital was still ranked higher than in 2005 when it hit a low of 63 on the rank of 104 cities.

Alison Newton, a partner in the regeneration practice for law firm McGrigors, said Scotland should be "reasonably satisfied" with the results of the report compared to other UK cities which fared worse. Liverpool and Belfast were the biggest fallers among the UK locations.

"Edinburgh was always more than two banks and a festival, and now more than ever Business Edinburgh has to make that message clear," she said.

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