The small town I grew up in: Flux of Pink Indians, who are really fucking good.
http://www.youtube.com/watch?v=8gqL0wcGlFM
But I was born and live in London so although London is kind of a big deal in terms of the history I'd say it's biggest contribution these days is Cafe Oto, I'm scratching my head about any really decent musicians/bands to come out of here in the last 10 years (i.e. since grime/dubstep).
Not that there hasn't been anything good, just not anything great. Aside from VVSR.