What Makes a Good Town? Five Key Ingredients for Success 2026

What makes a good town? It's a question that politicians and planners have wrestled with for decades, and one that has renewed urgency after Andy Burnham's promise of a new dawn for Britain's forgotten towns and high streets. Following the Makerfield byelection, Burnham argued that places outside big cities had been "forgotten or written off" and pledged to ensure fairness for neglected areas. With more than four times as many people in Britain living in a town than a city, the stakes are high. Since the turn of the millennium, big cities and more prosperous towns have grown significantly faster than weaker local economies. Manchester's population rose by almost a third amid a renaissance that its former mayor capitalised on before entering No 10. In contrast, towns have been growing more slowly than cities on average and are ageing faster. Some, like Barrow-in-Furness (6%), Peterlee (11%), and Rishton (13%), are in population decline. To turn things around, experts say the prime minister will need to nurture the ingredients of local economic success. Here we chart five critical components.

1. Job Opportunities and the Drivers of Deprivation

Roughly every five years, official estimates of local deprivation in England, Scotland, Wales, and Northern Ireland are made using a range of statistics for an index of multiple deprivation. Each metric is designed to capture different aspects of disadvantage, from income and employment to education and health. Towns with fewer job opportunities often score poorly on these indices, creating a cycle of decline that is hard to break. Access to stable, well-paid employment is therefore a foundational ingredient for any successful town.

But it's not just about the number of jobs; it's about the quality and diversity of the local economy. Towns that rely on a single industry are vulnerable to shocks, while those with a mix of sectors are more resilient. The index of multiple deprivation helps policymakers identify where investment is most needed, but it also highlights the interconnected nature of deprivation. Tackling joblessness without addressing poor housing, education, and health is unlikely to succeed in the long term.

2. Infrastructure and Connectivity

Good transport links, reliable broadband, and quality public services are essential for attracting businesses and residents. Towns that are well connected to larger cities can benefit from economic spillover, but they can also lose talent if commuting is too easy. The key is to create a self-sustaining local economy that offers reasons to stay. Infrastructure investment—from roads and railways to digital networks—can act as a catalyst for regeneration, but it must be matched with local amenities and opportunities.

In recent years, the shift to remote work has changed the calculus. Some towns have seen an influx of new residents seeking more space and a better quality of life, but only if the infrastructure can support them. Without adequate housing, schools, and healthcare, this influx can strain resources and drive up costs for existing residents. Balanced planning is crucial.

3. Education and Skills

A town's future is closely tied to the skills of its population. Good schools, accessible further education, and opportunities for retraining are vital for helping residents adapt to a changing economy. Towns with a strong educational offer can attract families and businesses alike, creating a virtuous circle of investment and growth. Conversely, towns with underperforming schools often struggle to retain young people, leading to an ageing population and a shrinking tax base.

Partnerships between local employers, colleges, and universities can help align skills training with the needs of the local economy. Lifelong learning is not just a buzzword; it's a necessity in a world where technology is rapidly transforming industries. Towns that invest in their people are better placed to weather economic storms and seize new opportunities.

4. Housing and Affordability

Housing is a critical component of any thriving town. A lack of affordable homes can push key workers out of the area, making it harder for local services to function. At the same time, poor-quality housing can blight neighbourhoods and contribute to health problems. The right mix of housing—including affordable rent, social housing, and homes for sale—is essential for creating balanced communities.

Planning policies should encourage the reuse of brownfield sites and empty buildings, particularly in town centres, to revitalise high streets and reduce pressure on greenfield land. Affordable housing is not just a social good; it's an economic imperative. Without it, towns cannot attract the workforce they need to grow.

5. Community and High Street Vitality

The heart of any town is its high street and community spaces. These are the places where people meet, shop, and socialise, and their vitality is a strong indicator of a town's overall health. The decline of high streets has been a major concern, accelerated by the rise of online shopping and, more recently, the pandemic. But high streets can be reinvented as hubs for leisure, culture, and services, not just retail.

Successful towns often have active community groups, local festivals, and a strong sense of place. Community engagement in decision-making can help ensure that regeneration efforts reflect local needs and aspirations. When people feel invested in their town, they are more likely to support local businesses and contribute to a positive cycle of improvement.

• Jobs and deprivation: Stable, diverse employment is foundational; deprivation indices highlight where to target investment.
• Infrastructure: Transport, broadband, and public services attract businesses and residents, but must be balanced with local amenities.
• Education and skills: Good schools and lifelong learning create a virtuous circle of investment and growth.
• Housing: Affordable, quality homes are essential for attracting and retaining a workforce.
• Community vitality: Thriving high streets and active community groups foster a sense of place and social cohesion.

How the Ingredients Interact

These five ingredients do not exist in isolation; they interact in complex ways. For example, improving education can lead to better jobs, which in turn can support high street revitalisation. Conversely, a lack of affordable housing can undermine efforts to attract skilled workers, even if jobs are available. The index of multiple deprivation captures some of these interconnections, but policymakers must take a holistic view.

Successful towns often have strong local leadership that can bring together different stakeholders—businesses, community groups, and public services—to create a shared vision. This is where national policy can help by providing funding and flexibility, but ultimately solutions must be tailored to local circumstances.

As the government seeks to deliver on its promise to level up, the lessons from successful towns are clear. It's not about a single silver bullet but about nurturing a combination of factors that together create a thriving local economy and community. The challenges are significant, but so are the opportunities. By focusing on these five ingredients, policymakers can help ensure that towns across the country are no longer forgotten or written off.

For a deeper look at the political priorities shaping this agenda, see our analysis of the five key priorities for MLS's new commissioner in 2026, which highlights how leadership and strategic focus can drive change. Similarly, recent controversies such as the KPMG client leaks underscore the importance of transparency and accountability in public life. These themes resonate with the challenges facing towns, where trust and good governance are essential for progress.

Understanding public sector accountability is also crucial, as explored in our coverage of the KPMG leaks inquiry. Meanwhile, on a lighter note, the trend of roster dating shows how social dynamics are changing, but the need for strong communities remains constant. And for a stark reminder of the pressures on public services, the Lindsay Clancy trial highlights the importance of robust support systems for families.