Recovery 'disproportionately' benefiting London

The economic recovery is widening the gap between London and other cities in the UK, according to new research from the Centre for Cities think-tank.

Liverpool: 'welcome signs of growth'
Liverpool: 'welcome signs of growth'

In its latest "healthcheck" on the nation’s largest urban centres, Cities Outlook 2014, the think-tank says London accounted for 80 per cent of national private sector jobs growth between 2010 and 2012, which it defined as the initial phase of the economic upturn.

The report says that London created 216,700 private sector jobs over that period, almost 10 times more than second placed Edinburgh.

In addition to the Scottish capital, Birmingham, Manchester and Liverpool were also showing "welcome signs of growth" in terms of private sector jobs, according to the research.

But Centre for Cities warned that Bradford, Blackpool and Glasgow had all seen job losses in both private and public sector jobs, meaning that people were "unlikely to be feeling the effects" of renewed national prosperity.

It said that London’s status as the nation’s economic powerhouse was underscored by figures showing that one third of 22-30 year-olds who moved from one city to another chose to relocate to London, while 60 per cent of Londoners who moved out of the capital stayed in the South East - and remained in its jobs market.

Centre for Cities chief executive Alexandra Jones said the latest report underscored the need for the nation’s largest urban centres to gain additional devolved power in order to better aid their economic needs.

"The gap between London and other UK cities is widening" she said.

"To enable cities to respond to their particular strengths and weaknesses the government should build on City Deals and devolve more funding and powers to UK cities – London and others - so they can generate more of their own income and play to their different strengths.

"This will help ensure this is a sustainable, job-rich recovery across the country."

Bristol ranked lowest on Centre for Cities' performance table, marking a 4.9 per cent drop in private-sector employment - equating to 13,500 lost jobs, and a 0.5 per cent drop in public-sector jobs, with the loss of 500 posts.


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