Laura Sharman 21 June 2021

Remote working sees major cities lose billions in spending, research warns

Remote working sees major cities lose billions in spending, research warns image

Five of the UK’s largest cities could lose £322m a month in city centre spending if people work from home in the long-term, according to new analysis.

Research by the the Centre for Economics and Business Research (cebr) found the pandemic caused £11.9bn of displaced city centre spending in London, Manchester, Glasgow, Newcastle and Cardiff between March 2020 and May 2021.

It estimates these five cities will see employment hub spending fall by more than £300m a month compared to pre-pandemic levels if office workers maintain hybrid work patterns indefinitely.

According to the research, Cardiff has the lowest share of workers who have returned to the office, standing at 50% lower than pre-crisis levels. Newcastle has the highest share of workers who have returned to places of work at only 34% lower than pre-pandemic levels in May.

The briefing states: ‘With the Government looking likely to encourage hybrid office work even after restrictions are lifted, there could be potentially fatal consequences for the businesses that are usually the recipients of this city centre spending. This will especially be the case once Government support from the furlough scheme dries up.

’A potential opportunity may be rising demand for places to eat, drink and shop in residential areas, as people continue to spend more time nearer their home. Government support to help employees and businesses adjust to these new opportunities through education and training may be a potential solution.’

Photo: cornfield / Shutterstock.com

SIGN UP
For your free daily news bulletin
Highways jobs

Makaton Tutor - Part Time / Term Time

Essex County Council
£25821.00 - £30377.00 per annum + + Pension
Makaton Tutor - Part Time / Term TimePermanent, Part Time£30,377 per annum, full time equivalent / equal to £15.74 per hour.Location
Recuriter: Essex County Council

Assistant Urban Design Intern

Essex County Council
Up to £25081.00 per annum + + 26 Days Leave & Local Gov Pension
Assistant Urban Design InternFixed Term, Full Time£25,081 per annumLocation
Recuriter: Essex County Council

Wellbeing and Independence Practitioner - Safeguarding Team

Essex County Council
£31931.00 - £36423.00 per annum + + 26 Days Leave & Local Gov Pension
Wellbeing and Independence Practitioner - ASC Centralised Safeguarding TeamFixed Term, Full Time£31,931 to £36,423 per annumLocation
Recuriter: Essex County Council

Financial Strategy Manager (Revenue)

The Royal Borough of Kensington & Chelsea Council
Negotiable
Bring clarity to complex decisions and help shape how we invest in our borough's future.Bring clarity to complex decisions and help shape how we inves England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Team Manager - Locality

Wakefield Council
£55,979.00, Grade 13
Wakefield Children’s Services have been rated by Ofsted as GOOD with outstanding leadership. Wakefield, West Yorkshire
Recuriter: Wakefield Council
Linkedin Banner