TWO Scottish cities have ranked among the best in the UK to work and live in a index comparing factors such as average incomes, work-life balance and commuting.

Aberdeen and Edinburgh were ranked second and third in the third annual Good Growth for Cities index, produced by PwC and think tank Demos.

The report measures the performance of 39 of the UK's largest cities against a basket of 10 categories defined by the public as key to economic success and personal and family wellbeing.

The factors evaluated include jobs, health, income, skills, work-life balance, house-prices, travel-to-work times and pollution.

Glasgow was ranked in 25th place in the overall index, well ahead of London, Liverpool and Birmingham and on a par with Manchester and Leeds.

Improvements in health, skills and work-life balance, and a below-average rise in ­unemployment were credited for placing Edinburgh well ahead of the pack, with Aberdeen scoring high for improvements in health and work-life balance, and a below-average fall in real income.

It was also ranked highly for being a good city to travel to work in.

Both fared well on key economic criteria. In the case of Aberdeen, a rise in property prices has been balanced by an increase in the sectoral composition of the workforce, said the report, while in Edinburgh, an increase in the skills base more than compensated for an overall decline in citywide employment.

Paul Brewer, head of Government and Public Sector, PwC in Scotland, said: "Aberdeen remains in second place behind Reading in the overall index, holding onto its 2013 position, with Edinburgh third.

"Overall the Scottish cities scored highly in terms of employment, income, work/life balance and the skills base, with Aberdeen demonstrating that high growth can also bring challenges, with housing affordability holding it back.

"The Scottish cities also show a broad sectoral balance, with only Edinburgh having a particularly high reliance on services and particularly financial services."

He added: "With the Smith Commission due to report later today, the Good Growth for Cities index demonstrates and reinforces the competitiveness of Scotland and Scottish cities in national and international markets as places to live and to grow businesses.

"Collectively the existing strengths of Scotland should inform a clear vision for future decentralisation, their goals for future growth, attractiveness, competitiveness and a programme of change that gets us there.

"Further devolution of tax-raising powers, and the use of those powers, should complement Scotland's city strategies and enhance Scotland's ability to take on and deliver new powers and responsibilities."

Lindsay Gardner, PwC's regional chairman in Scotland, said the index confirms that Scottish cities have advantages that go beyond pure economic measures and make the cities attractive investment locations.

"Investors want available and high-level skills, competitive operating costs and a world-class infrastructure with Scottish cities scoring well every year under each of these headings.

"Many larger English cities that can boast exceptional economic success pay a steep price in terms of congestion and pollution, income inequality, high house prices and particularly challenging travel-to-work treks."