British cities have experienced unprecedented downgrades in this year’s ratings, with London falling below AAA status for the first time since the City Ratings began in 2018. The decline stems from two key factors: a deteriorating environment for LGBTQ+ inclusion, marked by rising anti-trans rhetoric across the country, and national economic challenges including slow growth and high inflation.

Two major factors have driven British cities’ decline in LGBTQ+ inclusion rankings: government policy and shifting social attitudes. The UK government’s indefinite ban on puberty blockers coincides with an 11% rise in anti-LGBTQ+ hate crimes, particularly targeting trans people. While acceptance of same-sex relationships has grown over decades, support for trans individuals’ right to change their birth certificate gender has dropped sharply—from 53% in 2019 to 30% in 2023—impacting UK cities’ inclusion scores in this year’s City Ratings.

Despite these setbacks, British cities continue to perform strongly in human capital and innovation, with London’s service-sector economy growing 3.2% annually since 2020. However, broader national issues—including economic slowdown, inflation, and the cost-of-living crisis—pose growing concerns. All UK cities remain in the “fully open for business” category, but the contrast between resilient fundamentals and social challenges marks a potential turning point for the UK’s status as both a business powerhouse and leader in LGBTQ+ inclusion.

Switzerland leads the top tier of the City Ratings 2025, with Zurich, Geneva, and Basel each excelling in economic performance and LGBTQ+ inclusion. The 2022 referendum approving same-sex marriage with 64% support marks a deliberate national shift toward greater inclusion, strengthening already formidable urban economies. This cluster of high-performing cities reflects a distinctive development model that balances economic precision with increasingly progressive social policy.

Zurich tops economic rankings, particularly in innovation and human capital, while Geneva’s upgrade to AAA reflects improved social attitudes following marriage equality. Basel’s entrepreneurial strength highlights how the inclusion-innovation link extends beyond the country’s largest urban hubs. Together, these cities showcase how inclusion can be a driver of economic resilience and competitiveness.

What sets the Swiss model apart is its deliberate, consensus-driven approach to inclusion. Rather than relying on rapid policy shifts, Swiss cities have integrated LGBTQ+ rights into robust governance frameworks. Notably, all 26 cantons supported the 2022 referendum, creating a stable environment for talent and capital even amid global uncertainty.