The Chief Executive for Centre for Cities, Alexandra Jones
commented that the report illustrates the difficult year cities have
experienced. She stated the report highlights the key challenges facing cities
today such as economic development and unemployment and the importance of
encouraging private sector growth. Jones specified that growth has been low but
unemployment has increased due to the recession.
She highlighted cities need to support economic growth given
the current economic conditions. It is important to recognise that cities
are different both in terms of their levels of growth and unemployment. Three
key challenges were identified:
1) Short
term and long term focus. The short term focus should be to help alleviate
youth unemployment. The long term focus cities should be to establish ‘city
deals.’ (City deals are designed to give cities new powers to support economic
growth through Local Enterprise Partnerships).
2) A
partnership between the private and public sector and between cities and governments.
3) Policies
are needed to tailor the needs of cities.
Unemployment
Unemployment is a major issue. Cambridge unemployment
is low compared to Hull, which has seen a rise in unemployment in the area. The
reasons why unemployment varies from each city is due to the structure and the
size of the cities.
1) Structure: The structure of
the local economy is important for each city. Those cities that rely on
manufacturing have done badly compared to cities that specialise in knowledge
services. For this reason, London and Cambridge have experienced lower
levels of unemployment than cities with a more prominent manufacturing base.
2) Size: A large city does not
necessarily mean a successful city. Successful cities tend to be
nimble and with fast growing populations; such as Cambridge, Milton Keynes and
York.
The long term focus should be a strong working relationship
between cities and the government. The problem is there has been too much
emphasis on solutions originating from Westminster. Central government needs to
foster a greater understanding of the local economy. Cllr Sian, Leader of
Cambridge City Council noted that the Localism Act is an important step in
decentralising powers to local government.
This was echoed by Greg Clarke MP, Minster of State for
Decentralisation and Cities, who believes firmly that the relationship between
cities and governments is crucial. “City deals” will be effective once a
balance is reached between the government and the Core Cities outside of London
(Birmingham, Bristol, Leeds, Liverpool, Newcastle, Nottingham, Manchester and
Sheffield). Cities must take the lead on certain key policies and not
rely on the government for inspiration. A strong leadership personality at
city level is needed; someone that is visible and able to push through policies
needed for economic growth.
Cities must cope with population growth in order to create
economic growth and job prospects. The impact of globalisation has allowed
cities to share economic resources, which has paved the way for new forms of
technology and communication. It is important to create a knowledge driven
economy, connecting the power of invention with that of production. It will be
vital to maintain low transportation costs and a level of trust in order to
share policies amongst cities. Cities need to develop initiatives to attract
entrepreneurs. They also need to develop their own vision, with the support
from the government. However, cities are not a franchise of Whitehall.
He highlighted the importance of cities being able to
compete globally and to provide high value in goods and services in order to
export goods to other countries. Cities need to market themselves both
nationally and internationally.
In summary, the Outlook Report not only highlighted the
challenges facing cities today but also emphasises their potential to drive
economic growth. Local authorities must find new ways of investing to ensure
economic and housing growth, both essential for prosperity.
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