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

Head of Democratic Services, Elections & Monitoring Officer

Harborough District Council
Grade 12 £67,236 – £71,223 plus £3000pa Statutory Officer Allowance
We are looking for an accomplished and proactive leader for our vacant post of Head of Democratic Services & Elections Market Harborough, Leicestershire
Recuriter: Harborough District Council

Social Worker

Durham County Council
£35,412 - £39,152 (pre-progression) / £40,777 - £45,091 (post-progression)
We are looking for social workers who have completed the assessed and supported year in employment to join our Families First teams, working with our Durham
Recuriter: Durham County Council

Social Worker

Durham County Council
Grade 9 £35,412 - £39,152 (Pre-Progression) / Grade 11 £40,777 - £45,091 (Post-Progression)
Are you a nurturing social worker passionate about supporting parents so that children can remain with their birth family?     This could be the right Durham
Recuriter: Durham County Council

Administrative Officer

Durham County Council
Grade 4 £25,583 - £26,824
An exciting opportunity has arisen for a Administrative Officer to join our busy, friendly team, supporting Children and Young People’s Services. 1 x Spennymoor
Recuriter: Durham County Council

Lunchtime Play Worker

Durham County Council
£24,796 pro rata
Lunchtime Play Worker Grade 1 £24,796 pro rata Part Time - 6.25 hour per week, Monday – Friday
Recuriter: Durham County Council
Linkedin Banner