Regional evidence report

The West of England’s strengths, challenges and future prospects

The 2026 State of the West of England report sets out the region's current position on the social, economic and environmental conditions that contribute to the quality of life of the people in the West of England. It is the third in the State of the West of England series and reflects evidence related to the West of England Growth Strategy, launched in 2025.

The West of England remains one of the UK’s strongest regional economies. Employment is high, the economy is growing faster than the national average and the region has one of the UK’s most highly skilled workforces. However, the evidence suggests that economic success is not translating into improved living standards for all residents. Housing affordability has worsened, innovation activity has declined, transport congestion remains severe and inequalities persist. These challenges can constrain the region’s future growth and prosperity.

The strengths of the West of England

The West of England continues to benefit from a growing workforce, strong economic growth and internationally competitive sectors. It is well-connected externally, offers a host of cultural and natural attractions, and has vibrant communities.

1.2m population (increase of nearly 5% since 2020)
10% increase in working-age population since 2016 (exceeding that of all other combined authorities)
6.4% annual regional GDP growth from 2020-2023 (compared to UK rate of 4.5%)
110000 students across the region’s four universities
53% of the region’s working age population hold a level 4 qualification (above an A level or equivalent)
32m visitors annually
Boat, river and bridge
Image credit: Anna Barclay & Freia Turland

An attractive place to live

The West of England is one of the fastest-growing regions in the country, with population growth outstripping the UK average and every other combined authority. The region benefits from strong national and international connections by rail, road, air and port, supporting a visitor economy of almost 32 million trips each year. These links, combined with access to cultural and natural assets, contribute to a high quality of life that continues to attract people to the area.

Did you know? Cardiff, Cheltenham Spa and Exeter can all be directly reached by train from Bristol in less than an hour, while London, Birmingham and Southampton can all be directly reached by train in less than 2 hours.

Dynamic jobs and businesses

Economic growth in the West of England has exceeded the national average, and the region continues to have the highest productivity of all combined authorities. Business formation and survival rates are strong, and employment in priority sectors has expanded rapidly - up 50% in Digital and Technologies and 76% in the Creative Industries since 2015. Employing 57% of the regional workforce, the region’s Everyday Economy provides a strong foundation for growth.

Did you know? More than 300 high-growth businesses are based in the region.

Image credit: Bower Ashton, UWE

A young and qualified workforce

The region’s working-age population has grown faster than that of every other combined authority. A high proportion of residents hold degree-level qualifications, and the area’s four universities are home to 110,000 students. This young, well-qualified workforce continues to support innovation, business growth and economic competitiveness.

Did you know? 53% of the working-age population have qualifications beyond A Level - far higher than the national average.

The challenges we face

While the West of England has many strengths, significant challenges remain. From tackling child poverty and housing costs, to addressing congestion and carbon emissions, the region must take bold steps to ensure a more sustainable and equitable future for all.

12% of the population live in the country’s most deprived areas (over 150,000 residents)
67550 of the region’s children are living in poverty
45% rental percentage of median incomes in Bristol – the least affordable outside of London
150% increase in the number of residents within a 30 minute bus journey of Bristol city centre, if congestion was addressed
44% of the region’s total CO2 emissions from transport (just a 9% decrease in 10 years)
1600 of the region’s 16- and 17-year-olds are not in education, employment or training

Inequality and child poverty

Many people across the West of England experience significantly lower living standards than the regional average. Around 150,000 residents live in the most deprived 20% of neighbourhoods in England, including high concentrations in parts of Bristol, Bath, Avonmouth and Weston-super-Mare. Almost 70,000 children live in poverty, with rates rising and becoming more acute once housing costs are accounted for. These inequalities affect access to opportunities and contribute to uneven outcomes across communities.

Did you know? Almost 2,000 children currently live in temporary accommodation in the region.

High housing costs

High rental and purchase prices are affecting living standards and reducing the ability of employers to attract and retain workers. Private rents in Bristol now average 45% of median income – the highest outside London – and are 87% higher than ten years ago. A substantial backlog of unmet housing need has resulted in long waiting lists and increased numbers of households in temporary accommodation.

Did you know? The median house price across the region is £354,000.

Traffic congestion and emissions

Traffic congestion affects quality of life, limits access to jobs and services, and carries significant economic costs. Congestion in Bristol and Bath is estimated to have cost £230 million in 2025, and limits public transport performance. Bristol ranks 10th and Bath ranks 6th for delay times per driver, and the region ranks 38 out of 43 areas in England for overall bus satisfaction. Transport is the largest contributor to regional emissions, accounting for 44% of the total, and progress has been slow, with transport emissions falling only 9% over the past decade.

Did you know? Removing congestion would increase the number of residents within a 30-minute bus journey of Bristol city centre by almost 150%.

What's changed?

While many of the strengths of the region persist, with a strong economy, growth sectors and highly skilled workforce, this year’s report includes new insights around child poverty, digital inclusion and key challenges facing the region. The number of innovation-active firms and high-growth businesses have decreased, housing affordability has worsened and the economic costs of transport congestion have increased.

Relative deprivation has improved across the region, compared to nationally, however, inequalities persist.

What is the Mayoral Combined Authority doing about it?

We want to transform our region.

The next decade will see the West of England change. Growth will mean more job opportunities, new homes, an injection in pace and investment in the transformation of our transport network and the strengthening of those relationships that will help us deliver.

In 10 years, the action in this strategy will deliver tangible change and improve the lives of the people who call this region home.

Read the 10 year Growth Strategy