A 'Cities Paper' published by HM Treasury, the Office of the Deputy Prime Minister and Department for Trade and Industry, alongside the budget confirms the economic and social revival made by England's major towns and cities since 1997. However, challenges remain to strengthen and widen the urban renaissance.
The paper builds on the independent State of the English Cities Report, published earlier this month, which revealed that major cities in the North East are benefiting from rising economic performance and employment rates, and improvements in social cohesion, liveability and integration.
For example:
- Sunderland and Newcastle have seen an increase of more than 7% in the number of jobs between 1997-2003, with jobs growth in Middlesbrough exceeding 6%.
- Unemployment has fallen significantly since the late 1990's in all cities in the region, particularly in Newcastle.
- Newcastle has benefited from a 14% increase in the number of pupils achieving 5 or more GCSE grades at A to C between 1997 and 2004.
- Middlesbrough, Newcastle and Sunderland have seen a marked rise in the proportion of graduates in their workforces - especially in Newcastle where the increase is well above the regional average – which is supporting the dynamic new economic sectors.
- Newcastle had one of the lowest rates of robbery of any metropolitan area in the country in 2001. It also saw a decrease in the rate of vehicle crime from 1994 to 2004.
- The region's cities became more integrated in residential areas between 1991 and 2001, particularly in Newcastle and Middlesbrough.
The Deputy Prime Minister said:
"Our major towns and cities have made remarkable progress in recent years. The years of decline have been overcome as a result of record investment combined with strong economic growth and stability. We have seen an urban renaissance take shape in the North East, with Newcastle rapidly becoming one of the most dynamic cities in Europe, and Sunderland succeeding in the new knowledge economy.
"The message of the State of the English Cities Report and the 'Cities Paper', is that our cities are back as successful places to live and work. However, challenges remain to make our cities even better. There is still much to do. We need to build on this progress to deliver rising prosperity in all our cities and regions, and opportunity for all."
The 'Cities Paper' entitled 'Devolving decision-making: 3 – Meeting the regional economic challenge: The Importance of Cities to Regional Growth', highlights the importance of cities as drivers of growth within regions. It argues that the best approach to lifting regional and national growth is to devolve decision making to the most appropriate level. The paper also stresses the value of cities and regions working together across administrative boundaries as 'city regions' to raise economic productivity.
The 'Cities Paper' is part of a wider programme to strengthen the urban renaissance in the context of the work being done in the Comprehensive Spending Review 2007.
The Government is already working with a range of cities across the country, including the 8 Core Cities, to help them develop "business cases" to deliver a step change in their economic, social and cultural performance.
The forthcoming Local Government White Paper, the review of the powers of the Greater London Authority, the Lyons Inquiry into local government, and the Government's sub-national economic growth and regeneration review, will all inform Government's work ahead of the 2007 Comprehensive Spending Review.
