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Adam Marshall: Renaissance of British cities is still unfinished business
LITTLE more than a decade ago, Britain's cities were seen to be "the problem". Times have changed: there's now widespread agreement that cities will play a pivotal role in the UK's economic future.
But Britain's urban renaissance is unfinished business. City performance is still very uneven – across the country, within regions, and within cities themselves. What's more, uncertain national and international economic trends mean that cities will need to work even harder to succeed in the years ahead.
The "North-South divide" is real, but it is over-simplified. Some northern cities, including York and Warrington, have seen stronger economic performance over the last decade, whereas southern towns, like Luton and Plymouth, have struggled to grow.
The Centre for Cities' latest research shows that it is less grim up North. Five of the best-performing cities on employment growth – including Doncaster and Sheffield – are in the North. These cities have attracted thousands of new jobs every year over the last decade. But there's a catch. Recent growth in Northern cities is from a low base. For example, the employment rate in Sheffield (69.3 per cent) is well below the national average (74 per cent), and eight points below Leeds (77.5 per cent). And in Hull, where only 65.8 per cent of residents are in employment, one-quarter of adults do not have a single qualification.
City performance varies up and down the country, and there are pronounced differences even within Yorkshire. Local economies in York and Leeds are the strongest; Doncaster and Sheffield show signs of real improvement; and Hull, despite substantial regeneration efforts, is struggling to achieve its potential.
Many of Yorkshire's cities are doing better – but they still have a long way to go if they are to catch up with the likes of Bristol and Milton Keynes.
And there are also major issues to tackle within cities. All of our biggest urban areas – including Leeds – have deep inequalities within them. There's a big gap between the shiny new buildings of Leeds city centre and the fortunes of areas like Beeston. The Centre for Cities found that Leeds is the sixth most unequal city in England: it is polarised within its own boundaries.
By contrast, smaller and medium-sized cities, like York, Reading and Cambridge, display more equal performance locally.
So, what needs to happen next?
First, we need to shift the focus of urban policy away from shiny new city centres. All of our major cities have had a facelift – the new skyscrapers and residential buildings of Leeds city centre are clear evidence of this. But we can't turn around our cities with buildings alone.
The next wave of urban regeneration needs to deal with the difficult problems facing residents in under-performing areas – and that means better transport, housing, training, and the creation of even more jobs.
Second, all of our cities need more financial powers so they can sort out their own problems more effectively.
The Government has now started to offer more funding flexibility, devolved budgets and modest local revenue-raising. Cities now need to take up these new powers, and use them to finance and deliver their own strategies for revival.
Gordon Brown has promised more power to major urban areas like the Leeds City Region, in return for clear local plans to improve transport and skills. It's now time to deliver. Whitehall must give cities more power – but city leaders also need to be more entrepreneurial, and take more risks to promote economic growth.
Third, we need to be realistic. Regional differences between the North and the greater South-East are deeply entrenched. Cities like Bradford and Hull, which have experienced tough economic conditions in recent years, won't turn around overnight. And we must remember that London's continued success is vital to the whole UK economy.
But, as the Centre for Cities has highlighted, the three Northern regions – including Yorkshire – should do more to build up trade links with the capital.
Finally, cities have benefited over the last decade from the stability and strength of the national economy. Looking ahead, things are going to get more difficult. Cities face a number of headwinds, including tighter public spending, an uncertain housing market and slower national growth.
If the national economy falters, Yorkshire's cities face a number of big questions. Will high-performers, like York and Leeds, be able to build on their recent success? Will resurgent cities and towns, such as Doncaster, continue to add jobs and move people into employment? And can Leeds and Sheffield do more to reduce internal disparities – and help more people to benefit from recent growth?
Over the next decade, urban policy must address these difficult questions. Britain's economic future depends on it.
Dr Adam Marshall is Head of Policy at the Centre for Cities. Cities Outlook 2008 can be downloaded from the Centre's website: www.centreforcities.org
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