Consultancy organisation The Work Foundation has ranked the city with 10 others which forged ahead during a decade of growth, increasing their productivity by more than 70 per cent.

It means the city's skills base is now better than it was before, increasing the value of what is produced in Peterborough.

It is also because new jobs have been created, businesses have been doing well and there are more higher value businesses employing people with higher skills than was the case previously.

Chief executive of Peterborough Chamber of Commerce John Bridge said the research showed businesses were coping well with potential drags on the local economy, such as a shortage of qualified staff.

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In June, the Peterborough Regional Economic Partnership devoted its annual forum to the "skills gap" between what business needs, and what workers can offer.

Mr Bridge said: "Businesses have been able to get on and develop despite those challenges, but that doesn't mean they are not there. We can't rest on our laurels and we are not, as actions are being taken to make sure we are adequately dealing with these issues.

"But one of the key things is that Peterborough has accepted the growth agenda and the politicians, the council officers and the business community have together worked to ensure that the area can develop. Other places want to shove that agenda away."

Using a standard measure of productivity – GVA (gross value added) the amount of money that goes into the economy, The Work Foundation drew up a league table of 56 towns and cities in England.

Peterborough lies 15th, up from 21st 10 years earlier, having achieved a productivity increase per head of more than 76 per cent.

Its progress over the decade gives it a productivity measure of 112.8, compared with 100 for the whole of the country.

The city may still lag behind the two most productive cities, Cambridge and Oxford, but is on a par with places like Reading, Newcastle, and Bristol.

The progress here comes despite the skills gap warnings, which have pointed to the 16 per cent of working age people in Peterborough who last year had no qualifications – above the regional and national averages.

Mr Bridge said the city was benefiting from its willingness to recognise its strengths, such as its strategic location on the road and rail system, which was encouraging investment from the logistics industry.

He said: "Some people question whether logistics is the right kind of industry.