13 July 2007
Employment and population growth in the major cities of the Northeast of England are lagging behind the rest of the country, it was claimed this week.
The Institute for Public Policy Research's Centre for Cities group analysed economic performance across 56 of England's largest cities and towns using indicators such as employment rates, population trends and skill levels.
Its report, published on July 9, shows that the UK's bottom five performing cities are Newcastle, Sunderland and Middlesbrough, together with Birmingham and Liverpool.
This is not the first time that the Northeast has had its comparatively sluggish economic performance highlighted. An Organisation for Economic
Co-operation and Development report published last year noted that the area demonstrated limited prosperity and growth and trailed most other parts of the UK on key economic indicators.
By contrast, most of the top-performing cities were in the south of England. Reading, Bristol, Southampton and Cambridge were rated as high-performing urban centres. York was the only northern city included.
The Centre for Cities is drawing attention to what it calls the 'two-track' cities, where some have done much better than others.
Centre director Dermot Finch said: 'Over the next decade, successful cities like Bristol and York will need to maintain their competitive edge and deal with challenges such as congestion, house price inflation and skills shortages. Meanwhile, lagging cities like Sunderland and Liverpool are struggling to catch up and will need to focus on expanding their business and employment base.'
But Alan Clarke, chief executive of the Northeast's regional development agency One NorthEast, said he remained to be convinced that such indexes took account of a city's often complex economic context.
'There is evidence to show we are closing the gap with the rest of the UK and our economy is now actually the fastest growing in the country. We have more people in employment than ever before, we're experiencing indigenous business growth and we are attracting big national and international companies into the region,' he told Public Finance.
'When seen alongside the quality of life we enjoy in the region… and when you consider the economic legacy we have overcome, the picture is actually very positive.'
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