The recession has widened the gap between UK city economies, according to the Centre for Cities' annual economic index.
Cities that were already suffering before the recession such as Barnsley and Stoke have been hit hardest, the study found. |
Cities Outlook 2010 finds that, as the UK begins to move out of recession, the recovery will be un even.
Already-robust city economies like Brighton are more likely to grow stronger, leaving others like Doncaster further behind. The Centre for Cities believes this will make it more difficult for those hit hardest by the slump for forge a economically sustainable future.
The group highlights ‘big hitters’, ‘ones to watch’ and those ‘with a tough outlook’.
Five big hitters: The turnaround of the largest cities will be ‘critical to the national recovery’. More than one in three jobs (39%) in England is based in just five cities - Greater London and the City Regions of Manchester, Birmingham, Leeds and Liverpool.
Five to watch: Brighton, Milton Keynes, Reading, Cambridge and Edinburgh were found to have the right ingredients to succeed after the recession has passed. They have strong private sectors, high levels of entrepreneurship, highly educated workforces and large shares of knowledge-intensive jobs. Brighton added the highest number of private sector jobs over the past decade - an extra 20,000 jobs. Over a third of its workforce is graduate-level - and one in five of its jobs are part of the knowledge economy.
Five with a tough outlook: Other cities, such as Stoke, Burnley, Barnsley, Newport and Doncaster, with their weaker business base, have a much tougher outlook. These cities all lost private sector jobs over the pre-recession decade, the study found.. Their rate of business start-ups is low and many of their residents have no qualifications.
’We face an uneven recovery. The national economy may be emerging from recession but cities like Brighton are likely to recover more strongly than the likes of Barnsley,’ Dermot Finch, Chief Executive of the Centre for Cities, said.
’Party leaders need to wake up to the reality that some cities will still feel in the middle of a recession until well after the election. The next Government needs to help these struggling cities fix the basics - like improving schools and public transport so they can attract new business and jobs.’
Cllr Margaret Eaton, Chair of the Local Government Association, which supported Cities Outlook 2010, added: ‘The fastest way to move from recession to recovery is for more decisions about the economy to be made at a local level, which means councils continuing to work with local people and businesses.’
Cities Outlook 2010
