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Home > News > News Archive > Budget confirms recovery of North West cities

Budget confirms recovery of North West cities

Published: Fri, 24 Mar 2006 14:07:34

Cities in the North West have turned the corner after years of decline, but can become even better, said the Deputy Prime Minister, John Prescott.

A 'Cities Paper' published by the Treasury, ODPM, and DTI, 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 West are benefiting from rising economic performance and employment rates, and improvements in social cohesion, liveability and integration.

For example:

  • The rate of population loss in major cities in the region has fallen markedly since 1991 and been reversed in Preston and Manchester which both gained population between 1997 and 2003.
  • Manchester, Liverpool and Preston saw increases of more than 10% in the number of jobs between 1997-2003, with jobs growth in Liverpool exceeding 20% - a higher rate of increase than for the region or the country as a whole.
  • Unemployment has fallen significantly since the late 1990's in all cities in the
    region, particularly in Liverpool.
  • All the region's cities have benefited from an increase in the number of pupils achieving 5 or more GCSE grades at A to C between 1997 and 2004. This was particularly marked in Liverpool where numbers rose by more than 50%.
  • Manchester, Liverpool and Preston saw a marked rise in the proportion of graduates in their workforces from 1991 - 2001- especially in Liverpool and Manchester where the increase of over 38% was well above the regional average. These trends are supporting the growth of dynamic new economic sectors in the local economies.
  • Manchester saw a decline in both burglaries and vehicle crime between 1999 and 2004, which was particularly marked in vehicle crime. Liverpool also saw a noticeable fall in vehicle crime over the same period.
  • All three cities (Manchester, Liverpool and Preston) saw a reduction in residential segregation of ethnic groups between 1991 and 2001.

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.


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