Cotton on wheels in English city (8)
I believe the answer is:
carlisle
'english city' is the definition.
(city in England)
'cotton on wheels' is the wordplay.
'cotton' becomes 'lisle' (lisle is a kind of cotton).
'on' is a charade indicator (letters next to each other).
'wheels' becomes 'car' (wheels can informally mean a car).
'lisle' after 'car' is 'CARLISLE'.
'in' acts as a link.
(Other definitions for carlisle that I've seen before include "County town of Cumbria" , "See" , "Cumbrian city where Royalists surrendered in 1645" , "cathedral city" , "Cellars I turn to in Northern English city" .)