Partner Article

Growing disparities across UK cities

The economic downturn is fueling growing disparities between the most prosperous of the UK’s cities, and the poorest.

The Cities Outlook report, published by the Centre for Cities, and supported by IBM and LGA, has isolated key indicators from the UK’s main cities.

As the national economy struggles to create enough private sector jobs to drive growth, or to counter public sector job losses, the current situation is having uneven affect across the country.

In February 2008, the gap in the claimant count rate between Hull and Cambridge was 3.2%, and by November 2011 this gap had widened to 6.1%.

The report identifies cities with less dynamic private sectors, such as Hull, Doncaster and Newport, as those places that will have greater problems in offsetting the effects of the downturn.

Edinburgh, Cambridge and London were shown to be among those cities that had performed well, despite the challenging environment.

Common traits were identified in these cities, as they shared strong private sectors, high numbers of skilled residents and large numbers of ‘knowledge workers,’ in professions such as accountancy, law and finance.

Alexandra Jones, Chief Executive of Centre for Cities, said: “The year ahead is going to be tough for all UKcities but Cities Outlook 2012 shows that some cities are well-placed to kick-start economic growth.

“However, some cities have been hit particularly hard by recession and the gap between cities is widening.

“This makes it vital that government policy is tailored to meet the needs of each city rather than one-size-fits-all. What is right for Brighton and Reading will not be right for Dundee and Middlesbrough.

“During 2012 cities should take the lead in shaping their local economies, and the Government should give them the financial and political powers they need to make the right decisions for growth.

“Where cities face greater social and economic challenges, the government should offer support to help places adapt and respond to a rapidly changing global economy.”

The report identifies five key cities including Milton Keynes, Cambridge, Edinburgh, London and Aberdeen, that are well placed to drive the national recovery.

Steven Peel, IBM Business Development Executive, said: “Cities Outlook 2012 highlights the challenges confronting cities today and the widening gap between their ability to respond.

“Both should be a cause for concern and a catalyst for decisive action. Leaders will need to be innovative and bold within their cities to identify and create competitive advantage and drive economic growth.

“Those that do will be equipped with insight that will enable them to really understand the dynamics within their cities and deliver targeted improvements in the quality of public services and in the creation of attractive locations for people and business alike.”

Councillor Peter Box, Chair of the LGA’s Economy and Transport Board, added: “The latest Cities Outlook report highlights the significant differences in how our cities are dealing with the tough economic climate.

“Councils strongly support the premise that Government policy must be tailored to meet the needs of each individual city, rather than a one–size-fits-all approach.

“It is vital that local council and business leaders, who understand their cities best, are given the tools they need to deliver growth, create jobs and start businesses.

“Councils have already started the process towards re-energising cities and communities and must now be allowed to go further.

“Changes to the planning system can help, but the LGA is now calling on the Government to localise the running of apprenticeship schemes and the ability to improve transport infrastructure to increase growth further.”

This was posted in Bdaily's Members' News section by Tom Keighley .