Recession to hit some UK cities harder than others
Leading UK cities will be hit harder than they think by the recession, with regions outside the South East likely to suffer the most, according to a new report today.
A new study by research group Centre for Cities has placed a number of cities on "red alert" for being most exposed the impact of the recession.
These cities, including Belfast, Liverpool, Wigan and Hull, have been identified due to the number of residents there who are unemployed or have no qualifications.
Cities on "amber" include Bristol, London and Edinburgh, which all have strengths such as skilled populations and diverse industries but also weaknesses including exposure to vulnerable financial services.
Some cities were on "green", mainly in the South East, a region said to be better placed to recover more quickly from the effects of the current recession.
Oxford, Reading and Cambridge were among those singled out for entering the recession in a stronger position than other parts of the country.
Dermot Finch, director of the Centre for Cities, said: ``UK cities will be hit harder than they think by this recession. Nearly all say they are well-placed to weather the storm - but they can’t all be right. The recession will hit our cities in different ways - and some will be hit worse than others.
``Cambridge is comparatively well-placed, with its highly-skilled workforce and global links. Bristol will lose a lot of financial services jobs, but many of its workers are highly-skilled and adaptable. Hull looks vulnerable, because many of its residents are relatively under-skilled and may find it hard to adjust.
``Cities will lead us out of recession - but they can’t just rely on action from Whitehall. Each city needs its own front-line action plan, to keep jobs and retrain workers - and more powers over economic development."
Sir Jeremy Beecham, vice chairman of the Local Government Association, said: ``The recession is going to hit different parts of the country in very different ways and even within individual regions there are marked differences as to how local areas could fare. It is clear that a national, one-size-fits-all approach to dealing with the recession simply isn’t going to work.
``The fastest way to get out of recession is for more decisions about the economy to be taken at the local level, which means councils and other local bodies continuing to work together with local people and businesses.
``All over the country councils are reacting quickly to the needs of businesses in their area. Councils are keen to be partners of Government in fast-tracking investment in infrastructure and the environment and in addition to stimulate the local economy by promoting the take-up of council tax and other benefits alongside small business rate relief."
Shadow local government secretary Caroline Spelman said: ``This report is a shocking indictment of Labour’s failure in our cities. After a decade of powers being stripped from local communities and taxpayers’ money being wasted on regional government, this report shows our cities have been left with neither the means or the powers they need to tackle the effects of this recession.
``The recession is now hitting Britain’s poorest and most vulnerable the hardest, with communities in cities like Liverpool and Stoke feeling at first hand the painful effects of Labour’s failed economic policy and disastrous regional policy.
``It is now time for Gordon Brown to hand powers back to local people, so that they can set about putting in place the measures most needed by their communities."
