It looks for places that have a neutral impact on the environment by measuring air quality, CO2 emissions, recycling levels and energy consumption. Alongside this, it considers the extent to which places provide the infrastructure that people and businesses need to flourish. This includes indicators such as households on local authority waiting lists, dwelling completions, planning applications and the number of homes built on previously developed land. 

This combination of measures sees areas in the south of Wales performing more strongly than the north, with the five top-ranking areas all in the south: Vale of Glamorgan, Rhondda Cynon Taf, Bridgend, Monmouthshire and Torfaen. Meanwhile three of five bottom-ranking areas are in the north (see map 1). However, there is a large degree of regional variation, with some northern areas ranking above average and some southern areas ranking below average. This variation stems partly from the suite of measures in this basket which – perhaps more than any others – are influenced and shaped by local authority policies. This means that, within a region, neighbouring areas could see very different decisions being made in relation to housing, planning and recycling.

Map 1 - How areas of Wales perform against the Vibrant Economy Index resilience and sustainability indicators

To create vibrant economies, those responsible for shaping place must ensure not only that enough homes are provided, but also that the right type and tenure of homes are available. Local authorities need to consider the availability of affordable and family homes as well as the provision of flats and other housing types. As the population grows, they must also consider the environmental implications of growth, particularly in terms of energy consumption and the levels of waste generated. As with the other baskets, these are challenging issues for which there are no easy solutions.