Think tank warns of slow recovery for some UK cities

| January 18, 2010 | 0 Comments

Research group Centre for Cities has warned that some UK cities will take years to return to pre-recession levels.

The independent think tank said cities such as Stoke-on-Trent, Barnsley, Doncaster, Burnley and Newport will feel the effects of the recession for many years to come as people in these areas are less qualified and there are fewer business start-ups.

However, it names Brighton, Milton Keynes, Reading, Cambridge and Edinburgh as areas that will bounce back from the recession as a result of being highly-educated areas.

It has gathered its research over the last two years and the Centre for Cities assessed 64 of the UK’s towns and cities.

The report found that the highest percentage of people claiming jobseeker’s allowance was in Hull while the lowest was in Cambridge.

Commenting on its findings, Dermot Finch, chief executive of the Centre for Cities, said: “The next Government needs to help these struggling cities fix the basics, like improving schools and public transport so they can attract new business and jobs.”

Margaret Eaton, chairman of the Local Government Association, said: “The recession is affecting different parts of the country very differently to others, which underlines how a national, one-size-fits-all solution to getting us out of the downturn simply isn’t going to work.”

The UK economy, which has now contracted for six consecutive quarters, has been lagging behind other economies and is now the last major economy that is still in recession.

Official figures on 26 January will confirm whether the economy saw positive growth in the fourth quarter.

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