Towns and cities facing new recession

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will certainly not return – and in reality, many public sector jobs will be lost.”

The report singles out Hull to illustrate the divisions driven deeper by the recession. The number of people claiming Jobseekers’ Allowance in Hull has soared by more than 6,000 during the recession, compared with less than 2,000 in York.

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Centre for Cities warns that in the tight financial climate government should not concentrate on “constructing shiny new buildings“but should fix the basics – better schools, raising skills and improving public transport.

It calls for a mayor with powers to govern over the greater Leeds area and says the next government needs to draw up a new “urban policy” which recognises cities will be the ones driving economic recovery.

The chief economist for regional development agency Yorkshire Forward, Patrick Bowes, said: “We welcome the news that Leeds is among those cities expected to drive the UKs economy out of the recession as we believe that Leeds is central to helping the region move quickly out of recession.

“In a tight public spending climate, we believe that it is now more important than ever that we continue to run efficient regional economic development programmes to ensure there is no duplication or variation in the quality of support we give to businesses in Yorkshire and Humber, while continuing to ensure the right resources are directed to the right areas.”

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