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The UK's City-Regions

A look into the redevelopmentm of the UK''s cities.

At your Leisure - 30 May 2005

Success in the City: How the UK's City-Regions may be Re-Born

The Millennium Bridge, Newcastle

Image: Still grim up north? Hardly - sights such as Newcastle's Millennium Bridge are symbols of the regeneration taking place in Britain's cities. Copyright: Szabolcs Bökönyi, stock.xchng

Seldom does a week pass without some report or other listing the ten best or worst places in Britain in which to live, work, buy a home or die. This kind of list earns column inches in the print media and feeds talk of, either the shock that the north of England is no longer 'grim', or cynicism at 'yet another survey' telling us something we already knew ten years ago. The 'Lonely Planet' guides to UK cities, reported in the media this week (end of May 2005) is one example of this genre that also includes the 'Crap Towns' guides.

Often, it's a part of the marketing activities of publishers, hungry for their latest product to be talked about on TV and radio. But 'At your Leisure' has no commercial axe to grind, so merely presents in this article an analysis of why improvements to our towns and cities should go beyond 'getting a new shopping centre'. It aims to highlight the work that is underway in the UK to create successful British cities and the benefits that such improvements can bring to the cities themselves, the regions they are located in and the standard of living in the whole country.

This article will go beyond the view that we should be surprised that cities like Liverpool, Manchester and Newcastle are no longer dominated by heavy industry. That process started several decades ago and failing to recognise economic development in the north of England is both outdated and more than a little patronising. We'll be comparing the performance of these and other cities with their EU equivalents. We'll also see how UK policy may lead to cities and regions that take advantage of their unique qualities, become more appealing places in which to live and work, and close the wealth gap that exists between themselves and London, as well as other European regional cities.

In post-industrial countries such as Britain, where the tertiary sector of the economy dominates, what role do cities play? Will Hutton, Chief Executive of the Work Foundation, believes that a large city in the modern world should be seen as a contemporary version of a 'metropolis'. He envisages a city as an 'ideopolis', creating and applying new ideas through its university and companies, making for a vibrant, knowledge-based regional economy.

This vision has been taken up by the Government in its policies on cities, regions and competitiveness. The strategy has at its centre the following observations:

  • UK growth is focused too much on London and the south east of England
  • This has led to increased congestion in these areas and 'overheating' of the economy in that region
  • GDP (the most commonly used measure of national income) per head is higher in the south east of England than in other UK regions
  • Cities can create and are sustained by regional growth
  • Continental European countries have regional cities (outside their capital cities) with far stronger economies and international profiles than their UK equivalents
  • If London remains the only significant international UK city, future UK growth will be hampered

An analysis of regional variation in the UK economy

Structural change

So let's start by reinforcing the point that over the past thirty years the UK economy has undergone a structural revolution. The following table shows the percentage of total UK employees employed by industrial sector 1974-2002.

  1974 2002
Primary 3.4 1.8
Secondary 41.9 18.4
Tertiary 54.7 79.8

Source: Office for National Statistics data

People today are over four times more likely to work in the tertiary sector than the secondary sector of the economy.


Distribution of national income

The degree of variation in the distribution of national income across the UK can be seen in the following table:

Region GDP per capita (£)
London 27,633
South East England 18,692
Scotland 16,397
Eastern England 16,086
South West England 15,897
West Midlands 15,257
East Midlands 15,097
North West England 15,088
Yorkshire and Humberside 15,056
Northern Ireland 13,522
North East England 13,275
Wales 13,174

Source: 2002 GDP per capita data from Eurostat (original data expressed in euro, converted by the author at rate of £1:€1.45)


Economic activity and unemployment rates

This variation can also be illustrated by differences in economic activity and unemployment rates across UK regions:

Region Economic activity rate Unemployment rate
North East 74.8 5.5
North West 77.1 4.8
Yorkshire & Humberside 78.0 4.2
East Midlands 79.8 4.3
West Midlands 78.4 4.6
East 82.0 3.9
London 75.2 6.7
South East 82.0 3.7
South West 81.8 3.5
Total England 78.9 4.6
Wales 75.1 4.5
Scotland 80.0 5.5
Northern Ireland 72.3 4.7
Total UK 78.6 4.7

Source: Labour Force Survey May 2005, Office for National Statistics

The economic activity rate includes all people over the age of 16 who are either in employment or are unemployed.

Unemployed people are those without a job, who want a job, have actively sought work in the last four weeks and can start work in the next two weeks; or those who have found a job and are waiting to start work in the next two weeks.


Migratory patterns

Studying migratory patterns in the regions sheds light on the flows of people throughout the UK. The following table shows inter-regional migration (net flow of people) in thousands 1991-2002.

Region 1991 1996 2000 2001 2002
North East (1,000) (6,000) (4,000) (3,000) (1,000)
North West (9,000) (9,000) (5,000) (4,000) 1,000
Yorkshire & Humberside 0 (7,000) 1,000 0 5,000
East Midlands 9,000 8,000 17,000 19,000 23,000
West Midlands (5,000) (10,000) (7,000) (7,000) (4,000)
East 9,000 18,000 21,000 20,000 20,000
London (53,000) (45,000) (69,000) (84,000) (107,000)
South East 13,000 29,000 14,000 8,000 9,000
South West 22,000 29,000 29,000 32,000 35,000
England (16,000) 6,000 (2,000) (16,000) (18,000)
Wales 4,000 2,000 7,000 9,000 14,000
Scotland 9,000 (7,000) (4,000) 6,000 5,000
Northern Ireland 3,000 (1,000) (1,000) 2,000 0

Source: Regional Trends No. 38 Migration

Falling population levels in the regions often signal economic decline for an area. They can rob affected towns, cities and regions of the vitality that people can bring to areas.

What is a city?

Here's what the Office for National Statistics says about the way urban areas are defined:

"The traditional concept of a town or city would be a free-standing built-up area with a sufficient number and variety of shops and services, including perhaps a market, to make it recognisably urban in character. It might have administrative, commercial, educational, entertainment and other social and civic functions, and, in many cases, have evidence of being historically well established. It would be a focus of a local network of transport, often a location for industries, and a place of employment for people from surrounding areas. It would be a place known beyond its immediate vicinity."

But they note that this traditional view is no longer appropriate, because:

"The current position in Britain is more complex. Free-standing towns have grown and coalesced into continuously built-up areas, and subsidiary centres have developed as suburbs and satellite towns. The process continues with the expansion of business and retail parks. Whilst some historic towns have stagnated and lost urban functions, many more settlements have expanded rapidly to the size of small towns, but without the range of traditional urban functions. In these circumstances no attempt has been made to define an urban area by the presence or absence of 'urban' functions."

Source: Office for National Statistics, Definition of Urban Areas, Census 2001

We can also have an attempt at saying what we believe constitutes a city. Perhaps the hallmarks of a city can be described as having three main themes:

The new Selfridges building in Birmingham's Bull Ring

Image: The new Selfridges building in Birmingham's regenerated Bull Ring encompasses many themes - architecture, shopping and leisure, open spaces, growth and employment. Copyright: Simon Gray, stock.xchng

  • Culture
    • Art, music, theatre, film
    • Access to the above
    • Architecture
    • History and heritage
  • Amenities
    • Sports and recreation
    • Shopping and leisure
    • Transport and public access
    • Parks and open spaces
  • Economy
    • Growth
    • Employment
    • Housing
    • Migration

Do you agree with this list? What changes would you make to our definition of the characteristics of a city?

What's the position of UK's cities relative to our EU neighbours?

In most of the advanced EU countries the major regional cities have stronger economies than do those in the UK. It is helpful to link the major cities to the regions in which they are located. These city-regions on the Continent tend to have far higher GDP per capita than most English regions outside inner London and the South East. Taking 2000 as the base year and setting average EU GDP per head at 100, we can compare the variation in economic affluence in key areas of Europe:

Area City-Region GDP/Capita 2000
EU 15 - 100
Lombardia Milan 135
Baden-Wurttemberg Stuttgart 116
Vlaams Gewest Antwerp 104
West Midlands Birmingham 93
North West Manchester 92
Yorkshire/Humber Leeds 89

Source: Regional Trends No. 38 EU Economic Statistics

The UK Government has identified eight English Core Cities which it believes have the chance to challenge this lack of economic competitiveness compared to other EU states. The eight core cities are:

  • Birmingham
  • Bristol
  • Leeds
  • Liverpool
  • Manchester
  • Newcastle
  • Nottingham
  • Sheffield

What's a city-region?

There is a close relationship between a city and the region in which it is located. Cities can boost regions, but they rely on regions for a range of key needs. A report to the Office of the Deputy Prime Minister (ODPM) on cities and their role in competitiveness, characterised the relationship between cities and regions as follows:

Cities boost regions by providing:

The Yorkshire countryside

Image: The beautiful Yorkshire landscape provides Leeds with opportunities for countryside leisure. Copyright: Vicky S, stock.xchng

  • A critical mass of public and private knowledge institutions
  • A vibrant environment for knowledge creation and transfer
  • Strategic business financial services
  • Connectivity to attract higher value business
  • Highly paid jobs, many attracting regional commuters
  • A concentration of culture, leisure and sport
  • Transport hubs
  • National and international profile

Cities rely on regions for:

  • Space for economic and infrastructure projects
  • A wider range of urban and rural housing options
  • Distinctive urban centres with niche retail experiences
  • A range of business sites and premises
  • A wider workforce and skills base
  • Opportunities for countryside leisure
  • Feedback on reputation and performance

Source: Cities, Regions and Competitiveness, Second Report from the Working Group of Government Departments, ODPM, June 2003

How are the core cities and their regions performing?

We have already seen that in terms of GDP per head, there is some progress to be made. According to a report ('Competitive European Cities: Where do the Core Cities Stand?') produced for the ODPM in January 2004, the following indicators are observed:

  • Fewer people are leaving and more are moving into the core cities
  • More people are working in the core cities
  • Regional airports are growing
  • People in the core cities are earning higher wages
  • House prices are rising
  • Educational attainment is improving but from a poor base level
  • Reported crime rates are falling in the core cities

But certain factors give cause for concern:

  • In the UK core cities, only Bristol has GDP per capita levels above the UK rate. This runs counter to the findings of the study in other EU city-regions
  • Many of the core cities are behind their EU counterparts in terms of innovation, educational attainment and social cohesion

So what can be done?

How then can these core cities continue to improve and close the gap on city-regions in many of the more advanced EU states? The economic issues are clear: continued economic growth, greater participation in the workplace, access to new growth markets, improved social and capital infrastructure. But where does leisure fit in?

This week, (end of May 2005), provides a classic example of how a city can be propelled into the headlines, for all the right reasons:

 

Liverpool: Renaissance of a City

As UEFA Champions League winners for the season 2004-05, Liverpool FC have written a new chapter in the club's history. Twenty years on from the Heysel Disaster, when 39 Italian and Belgian fans died after rioting Liverpool fans caused a wall to collapse at the 1985 European Cup Final, the club and city has a reason to look forward to the future, whilst never forgetting that terrible night.

Worldwide coverage of the AC Milan v Liverpool final, followed by the wild celebrations in the city after the Champions League victory, ensures that Liverpool, the city, has been exposed to international attention in the most positive way. The team returned to the city by air, arriving at the re-branded airport that now bears the name of one of the city's most famous sons. Liverpool John Lennon Airport is benefiting from the expansion of regional airports, part of the Government's regional planning agenda. It is one of Europe's fastest growing airports.

Images of the victory parade will have been seen across the world, with packed streets bedecked in the red of the club's famous playing strip. An estimated 300,000 people will have been seen crowding the area in front of St George's Hall.

Liverpool's waterfront at night

Image: Liverpool's waterfront at night - the city is the UK's choice for European City of Culture for 2008. Copyright: Dave Wood, stock.xchng

Liverpool also celebrates its status as a World Heritage City, part of the list run by UNESCO. The area of the city incorporated into the World Heritage site includes:

  • The Pier Head
  • Albert Dock
  • Stanley Dock
  • The Commercial Centre
  • The Cultural Quarter in the vicinity of William Brown Street
  • Warehouses and merchants' houses around Duke Street

And, of course, there is the city's status as the UK's choice as European City of Culture for 2008, with the associated investment and publicity that will be involved.

These events can be viewed as giving the efforts to galvanise one of the UK's Core Cities' renaissance a huge push forward. It also shows how leisure, sport and recreation can be key drivers of economic regeneration.

All that's needed now is for football clubs from the other seven cities to win the Champions League and we'll be making some real progress!


Activity

On the face of it, this article is all about economics and regional policy, but as the final section shows, the leisure industry has a major role to play in the health and affluence of our major cities.

  • Look through the list of previous 'At your Leisure' features (http://www.bized.co.uk/current/leisure/index.htm) and find examples of other aspects of the leisure industry that could be expected to contribute to the renaissance of UK regions.
  • Make a list from the examples you obtain, of the five most important to Liverpool in its challenge as one of the UK's Core Cities.
  • Why is an airport one of the key elements of creating what Will Hutton called an 'ideopolis'?
  • Imagine you work as one of Liverpool City Council's Marketing Officers. Make a list of the key aspects of your city that you would highlight to a company looking to locate in the city-region of Liverpool.
  • Look at the information provided by the Business Development Centre of Liverpool John Moores University (http://www.livjm.ac.uk/commercial/Enterprise/default.asp). Outline how the university can make an impact on the effectiveness of Liverpool's attempts to compete with other European city-regions.

Further information sources

Submitted by ahargrave on Mon, 30/05/2005 - 12:00