READING is "punching above its weight" as a survey revealed the town to be the second most prosperous place in the country.

Beaten only by London the humble Berkshire town is said to have boosted its worth through thriving entrepreneurship and a strong and varied business scene.

A booming local economy and healthy levels of employment all contributed to Reading's silver medal place ahead of large cities including Manchester and Birmingham.

The research from Barclays took into account the number of millionaires living in the area, average wages, business growth and average exam grades.

The average pay in Reading was calculated at £30,500, second behind London at £37,000.

Robin Reynolds, south east regional director of Barclays wealth and investment management, said: "Although the south east is often thought of as a traditionally prosperous region it is encouraging to see the effect of this translating into areas such as philanthropic giving or the business start-up environment. It is clear that residents in the south east have a real desire to give back to their local communities, supporting local charities and helping to foster a healthy business environment.

"It is particularly promising to see cities like Reading really punching above their weight when it comes to competing with larger cities like Manchester or Birmingham. Reading has built itself a strong and varied business ecosystem which is continuing to grow and drive high levels of wealth, employment and prosperity that we are seeing being replicated across the entire south east region."

The number of millionaires in the south east has risen by 40 per cent since 2010 with 157,000 people living in the region holding a seven figure wealth.

Household expenditure is also higher than any other region and the proportion of households giving to charity was third highest in the UK.

After the capital and Reading the prosperity index saw Cambridge, Birmingham and Bristol make up the top five cities.