FINANCE

The economic revolution

At the Core Cities Summit in London last week, the nation's largest cities put forward their plans for prosperity - and a new deal on financial freedoms.

As the country claws its way out of recession, a quiet revolution has begun within the Core Cities.

At the annual summit last week, the cities stated their claim for fiscal and political autonomy from central government.

Just as the Local Government Association has shifted tack in recent years away from what could be perceived as a ‘begging bowl mentality', the Core Cities' quest for independence is less a list of demands, and more a deal on what needs to be done to unlock the potential for economic growth in our major urban areas.

And as part of their side of the bargain, the Core Cities aims to:

1)    outperform the national economy by 2028, creating jobs
2)    become financially independent of government, producing more money from taxes than is spent in them on public services

The stakes are high.  According to a report by Professor Michael Parkinson, which was released at the summit, the future of the British economy relies on the expansion of the Core Cities.

His report reveals that, while London contributes 25% of national GDP, the core cities collectively provide a further 18%.  Of the Core Cities, only Bristol performed above the national average for GVA per Capita in 2011.  Outside the Core Cities, London, Edinburgh and Belfast were also above average.

According to figures from the Office for National Statistics, the Core Cities could bring 1.16m jobs and £222bn into the economy by 2030 – an additional £41.6bn in taxes.

However, if the performance in our key urban areas doesn't increase, those figures could be as low as 391,000 jobs and £162bn – a shortfall of more than three quarters of a million jobs and £60bn.

Prof Parkinson has outlined what he believes are the key factors in successful cities.

Heather Jameson

Popular articles by Heather Jameson

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