England's Most (and Least) Productive Cities
University cities and 'knowledge-intensive industries' are driving productivity in select English cities. But there is a widening gap between the UK's 'resurgent' cities -- which have revived flagging fortunes -- and 'stuck' cities, where economic growth has stalled.
In its report, 'How Can Cities Thrive in the Changing Economy', the Work Foundation highlights a gap between the cities that have bounced back from manufacturing's decline and the 'stuck' cities, where low productivity and a lack of employment in professional jobs are compounded by poor leadership.
The significance for business is in the way these cities are dispersed across England -- lower performing cities might just as well be in the south-east as the north-east, where the traditional divide ruled.
Now, it's a knowledge gap that prevails. In its list of 56 English cities, the most productive by a long way are Oxford and Cambridge. People are twice as productive here as in most other English cities measured, with the average Cambridge citizen adding over £30,000 to the local economy.
Compare this to Barnsley, at the other end of the table, where individuals contribute an average £10,728 to the economy.
Then there are those that have revived their productivity -- much aided by inward investment from big business and, in Reading's case, local benefactor John Madjeski.
Five productivity growers are
| City | % change GVA per head 1995-2005 (Gross Value Added) |
| Reading | 106.9 |
| Derby | 89.7 |
| Milton Keynes | 83.1 |
| Bristol | 82.9 |
| Bournemouth | 80.7 |
What separates the resurgent from the stuck is a focus on high-end, skilled job creation. Cities such as York and Newcastle have improved their lot by building on public sector industries such as healthcare and higher education.
Stuck cities need to do the same, says the WF, as well as investing in infrastructure and attracting more inward investment from businesses looking for brownfield sites.
Devolving power to city mayors would seem to make sense in leadership terms, as does the notion of forging links between less and more successful cities.
But if each city's fighting for a crust of shrinking investment, does this mitigate against trade partnership with neighbours? It's a question that will need to be answered quickly if England's to avoid turning into a country of haves and have nots.