Brighton’s economy is one of the most resilient in the country despite the challenging economic situation, a new report has found.

The study by think tank Centre For Cities found Brighton is performing well in many areas compared with some of the UK’s largest towns and cities.

It has the highest number of business start-ups outside London and is second nationally for the number of businesses per capita.

The city also ranked in the top ten for the lowest “hidden unemployment” rate in the country, as well as having among the most residents with high-level qualifications.

Councillor Phelim Mac Cafferty, leader of Brighton and Hove City Council, heralded the report as bringing “confidence and hope” despite choppy economic waters.

He said: “It’s really encouraging to see that Brighton and Hove businesses continue to be resilient despite a hugely challenging time.

“We are a productive city, with low economic inactivity and a high number of residents with top qualifications.

“Businesses continue to be innovative and at the cutting edge of technology which, in turn, enhances our productivity and prosperity.

“Despite all the things that make running a business especially tough currently, such as high inflation, the ongoing cost of the pandemic, the sheer cost of housing and the cost of living crisis, these results bring confidence and hope.

“We remain hungry as a city for local economic growth to secure future jobs, opportunities and apprenticeships.”

The findings noted that Brighton was one of the slowest-growing cities by population over the last decade, according to estimates from the Office for National Statistics, increasing by just two per cent between 2011 and 2021.

The city also saw the highest increase in house prices in the country, jumping by 10.7 per cent between 2021 and 2022.

Gavin Stewart, executive director of the Brighton and Hove Economic Partnership, said: “Unemployment numbers in Brighton and Hove have thankfully been falling since the pandemic high.

“Although we know that retail and hospitality sectors will struggle this year, particularly thanks to the effects of inflation and post-Brexit issues in staff recruitment, the overall outlook is positive for 2023, with forecasts that there will be a 1.1 per cent increase in the size of the Brighton and Hove economy by the end of the year.”