In Cities Outlook 2011, independent, non-partisan research and policy institute Centre for Cities identifies the cities best placed for a private sector led recovery. Milton Keynes, Reading, Aberdeen, Leeds and Bristol are better insulated from the economic impact of the spending squeeze, with lower vulnerability to public sector job losses and spending cuts.
However, Sunderland, Liverpool, Birkenhead, Swansea and Newport have low skill levels and levels of business activity, more people employed in the public sector and more people claiming unemployment benefits. They will need additional financial support from central government and a realistic local plan of action, says the report.
The performance of Britain’s largest cities is crucial, says Centre for Cities, with 11 of the country’s major cities providing more than one in three (37%) of Britain’s private sector jobs. These are London, Birmingham, Bristol, Edinburgh, Glasgow, Leeds, Liverpool Manchester, Newcastle, Nottingham and Sheffield.
There will be regional differences in the challenges cities will face as they seek to grow their economies. For example, seven out of 10 of those due to face the biggest welfare spending cuts by 2014/15 are in the North West of the country.
"Buoyant cities like Leeds and Bristol, which have been fast-growing and have lots of private sector jobs, are best placed to lead the UK’s recovery," said Alexandra Jones, chief executive of Centre for Cities.
"During 2011, the UK cities most dependent on the public sector, and which have seen slower economic growth over the last decade, will find it more difficult to rebalance towards the private sector," she added.
