Reading has the best transport system and communications links of any small town or city in Europe.

The town has been named the continent’s top “micro city” for infrastructure thanks to its strong road and rail network and unrivalled access to markets. Reading is followed by Neuilly-sur-Seine and Cannes in France, Eindhoven in Holland and Ghent in Belgium.

And the Foreign Direct Investment report ranked Reading eighth in the overall list of Europe’s top micro cities – those with a population of 250,000 or less based on economic potential and quality of life.

Dutch city Eindhoven headed up the table, followed by Cambridge and Grenoble in France.

Tim Smith, executive director of economic development company Reading UK CIC, said: “This is another independent accolade for Reading which we should be extremely proud of.

“What other town gets £800 million investment into its rail and £50 million into its motorway junctions during the worst recession for 60 years?

“Reading is the best connected city in England and, compared to the rest of Europe, we are better served. It is almost as seamless for the international traveller to visit London or Reading – we have great access to Heathrow and Gatwick.”

And Mr Smith hit out at sceptics by warning that Reading’s top grading was based on much more than just its transport system.

“Infrastructure is not just good road access. Communications infrastructure is just as much a part of it,” he said. “We all accept that the Thames Valley suffers from congestion. But to be placed first out of 223 cities is a phenomenal achievement.

“And to be eighth overall proves the Reading brand is getting traction and increasing people’s awareness of what we have to offer.”

Nicky Goringe Larkin, chairwoman of Reading FSB, said the town’s infrastructure was a big bonus for small firms. “Reading’s location makes it an attractive place for business to be based, within the heart of the Thames Valley, being easily accessible to London and its facilities,” she said.

“Infrastructure is an ever-evolving challenge, and the regeneration of the train station, continuing improvement of Reading’s road network and accessibility to high quality broadband is essential for local businesses to continue to thrive.”

Reading’s council transport boss Tony Page believed the research strengthened its bid for city status. “This shows that Reading is a town that has considerable strength on the transport and infrastructure front,” he said.

“We benefit from a great geographical position. In terms of its economic strength, Reading is already classed as a city by most academic organisations, and I think these comparisons will be used in the forthcoming campaign for city status.”

London was again crowned Europe’s number one city, ahead of Paris and Moscow, with Edinburgh (10) and Manchester (24) also in the top 25.

The South East was awarded the title of FDI’s European Region of the Future based on data for 223 cities and 142 regions.

Vanessa McCormack, regional director at Santander, which opened its Reading office in Forbury Square last month, said the town’s “excellent” infrastructure was a major attraction.

“It was one of the benefits the bank recognised when deciding to locate our Thames Valley corporate business centre in the town,” she said.

“Another influence was the town’s well established corporate and commercial sector.”

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