By Richard Johnstone | 19 January 2015
Cities in the south of England accounted for over 90% of UK’s job growth in the last decade, according to the think-tank Centre for Cities’ annual Cities Outlook.
The report examined the economic performance of the country’s 64 largest cities and found a growing gap between the best performing urban areas and those that were falling behind.
Growth between 2004 and 2013 was largely driven by only a handful of cities – mainly located in the south – that have seen their populations grow, their number of businesses increase, and thousands of new jobs created. The largest growth in jobs was in London, where the number increased by 769,500, while the largest percentage hike was in Milton Keynes, which saw an 18.2% increase.
At the same time, migration of young and skilled workers and a lack of business growth led other cities’ economies to contract. Around 14,500 jobs were lost in Blackpool, 10,700 in Huddersfield and 10,000 in Hull. Percentage drops of over 10% in total job numbers were recorded in Blackpool, Rochdale and Gloucester.
Overall, for every 12 net new jobs created between 2004 and 2013 in cities in the South of England, only one was created in cities throughout the rest of Great Britain.
Centre for Cities’ acting chief executive Andrew Carter said the report made it clear the next government must invest in the long-term success of our cities.
All political parties needed to ensure their visions for growing cities were based on significant devolution of both fiscal and structural power so they have incentives for cities to support economic growth, Carter said. The relative performance of cities over the last ten years showed a ‘steady as she goes approach’ could not continue.
‘We must move from thinking that bundling up new funding streams with bureaucratic delays, or simply tinkering around the edges with well-intentioned announcements, will be enough to reverse trends that are becoming increasingly entrenched,’ he added.
‘Cities need long-term funding and strategic planning, and policies that go to the heart of addressing the key drivers of economic growth – including transport, planning, skills and housing. This report throws down the gauntlet for all parties to turn their recent interest and pledges around cities and devolution into a clear plan to grow jobs and businesses, and improve quality of life throughout the United Kingdom.’
