OXFORD is in the top three cities for business growth, according to a new economic report.

The Powerhouse study, by law firm Irwin Mitchell and respected think-tank Centre for Economic and Business Research, says Oxford achieved a 2.5 per cent increase in output for the year to March 31.

The city was beaten by Milton Keynes, which saw 2.8 per cent growth and Cambridge, in the top spot with 2.9 per cent.

The report authors highlighted Oxford’s international investment and business incubators as key to its success.

They wrote: “Oxford’s economy has flourished in recent years with the city specialising in a number of high-tech industries such as biotech.

“With strong international investment and business incubators like the Fab Accelerator, Oxford is set to remain an entrepreneurial hub.”

The report also includes a forecast of where the 45 cities analysed will be in 10 years’ time.

It predicts Oxford’s economy will expand by 21.6 per cent and the number of jobs rise by 8.8 per cent by 2027.

Wendy Tindsley, co-founder of Fab Accelerator, said: “After a year of running this new programme we have had the privilege of working with a raft of ambitious and talented entrepreneurs and are constantly being approached by people with great business ideas and loads of talent.

“We see ourselves as plugging a gap in a high-tech county, where support for the traditional high-tech sectors is pretty good, but where there is less support for propositions outside these sectors.”

To read the full UK Powerhouse report, see irwinmitchell.com/ukpowerhouse