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

Fixing the broken retrofit system image

Fixing the broken retrofit system

Ian Preston, Centre for Sustainable Energy, argues the retrofit system is broken and offers lessons for the Local Authority Retrofit Scheme.
SIGN UP
For your free daily news bulletin
Highways jobs

Enabling Support Worker x 3 posts

Rotherham Metropolitan Borough Council
£24,294 - £25,979 pro rata (pay award pending)
Do you want to help people to gain more control over their lives? Rotherham, South Yorkshire
Recuriter: Rotherham Metropolitan Borough Council

Care Support Assistant (Obelisk House)

West Northamptonshire Council
£13.19ph
Obelisk House provides exceptional levels of support in residential and Dementia care. It is situated in a residential suburb in Northampton and it offers a wonderful living environment in which our residents can enjoy an enhanced quality of life. We ha Northampton
Recuriter: West Northamptonshire Council

Senior Carer and Support,Nights (Obelisk)

West Northamptonshire Council
£26,258 pro rata
Obelisk House provides exceptional levels of support in residential and Dementia care. It is situated in a residential suburb in Northampton and it offers a wonderful living environment in which our residents can enjoy an enhanced quality of life. We ha Northampton
Recuriter: West Northamptonshire Council

Arborist

Royal Borough of Greenwich
£30,033 - £31,440
Greenwich values its many trees and takes pride in caring for them and ensuring they are maintained Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Panel & Meeting Co-ordinating Office

Royal Borough of Greenwich
Scale 6
Royal Borough of Greenwich
Recuriter: Royal Borough of Greenwich
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.