Thomas Bridge 27 January 2014

Economic gap widens between London and other cities

The economic gap between London and other cities is expanding, with many locations not witnessing the effects of national growth.

Despite 66,300 public sector jobs being created in London between 2010 and 2012, twice as many of these roles were lost in cities across the country - research by think tank Centre for Cities has found.

Almost ten times more private sector jobs were created in London over this period than the second fastest growing city, Edinburgh, where numbers grew by 23,100.

Cities including Bradford, Blackpool, Glasgow and Bristol witnessed falls in both private and public sectors.

Almost one in three 22-30 year olds who chose to relocate have moved to London in recent years, fuelling claims that the capital is drawing talent away from other regions.

Cities outside of the capital should be playing to their own strengths and weaknesses in order to support local economic performance, according to the think tank.

However, the Cities Outlook 2014 report also urged the Government to commit to ‘radical devolution’ that delivers the political powers and financial freedoms required for regional growth.

Chief executive of Centre for Cities, Alexandra Jones, said: ‘The Government should build on City Deals and devolve more funding and powers to UK cities – London and others - so they can generate more of their own income and play to their different strengths.’

Agreeing with the think tank, mayor of Bristol, George Ferguson, said: ‘English cities need more in the way of devolved powers and control over funding to ensure we make the most of our local strengths.’

‘Bristol is currently the only major city in England outside the South East to make a positive contribution to the UK economy. The reported job losses up to 2012, whether accurate or not, only serves to stimulate my determination to create and attract more business in the Bristol city region and further strengthen our position as leader in a variety of sectors,’ Ferguson added.

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