A new study has discovered that economically prosperous local authority areas are not necessarily the happiest or healthiest places to live.

The new Vibrant Economy Index from Grant Thornton UK LLP looked at 324 councils and measured how their areas were doing economically and socially.

The results revealed Cambridge, Oxford, Richmond upon Thames, South Cambridgeshire and Guildford were the ‘most vibrant places’.

Grant Thornton found these five areas displayed what it described as a ‘good balance’ between economic growth, social equality, sustainability and healthy and happy people.

Local authorities in areas such as London and Leeds scored highly for economic prosperity, but the index demonstrated this did not necessarily translate into communities that are more inclusive or healthier.

Leeds, for example, has a relatively affluent economy but there are higher numbers of young people not in education, employment and training, a larger proportion of people claiming benefits, and lower average incomes.

The Index showed, Grant Thornton claimed, that traditional indicators of economic prosperity – including GVA, average earnings and business turnover – ‘do not correlate in any significant way’ with other measurements of performance, such as health, equality and opportunity.

‘The index demonstrates that if we want to create places that provide opportunity for all, we need to focus on more than headlines about economic prosperity,’ said Sacha Romanovitch, CEO of Grant Thornton.

‘Higher employment levels or strong business growth need to translate into the creation of communities that are more inclusive and equal, where populations are healthy and happy.

‘While economic performance is fundamentally important to the future of the UK, we need to ensure that this prosperity can also positively impact other factors including health outcomes, housing affordability, personal wellbeing and social inclusion.’