New analysis from Centre for Cities reveals that the eight
high-potential sectors targeted by the Industrial Strategy have a
strong bias towards the Greater South East.
Using data from The Data City, Centre for Cities maps where these
industries are located and where the opportunities for growth are
greatest.
Its analysis shows that urban areas are the preferred location
for these sectors. But, as noted in the Industrial Strategy, many
of the UK's largest cities outside the South East – including
Manchester, Birmingham and Glasgow – are not performing to their
full potential, particularly in attracting innovative,
high-growth firms. And this drives economic divides between
different parts of the country.
Centre for Cities finds:
-
Two-thirds of firms in the Industrial
Strategy's eight sectors (IS-8) are located in urban areas;
-
London and the Greater South East dominate the
geography of the IS-8 sectors;
- The underperformance of big cities elsewhere
explains most of the UK's regional divide;
- High-growth firms are particularly concentrated in
city centres, but many large cities have yet to
fully capitalise on this trend.
Centre for Cities calls for the Government to use its
newly-unveiled funds such as the Strategic Sites Accelerator,
Mayoral Recyclable Growth Fund, and R&D allocations to target
this underperformance. It should focus this spending in the city
centres of large cities in particular.
, Chief Executive of Centre
for Cities, said:
“It's great to see Government showing serious commitment to
supporting the UK's future economy through its new Industrial
Strategy.
“Our research shows the growth industries identified in the
strategy thrive in cities – but, right now, that mostly means
cities in the Greater South East.
“Big cities like Manchester, Birmingham and Glasgow should be
magnets for these firms, but they're currently underperforming.
Targeted investment to fix this would realise their substantial
economic potential and support national growth.”
