The Rise of the Regional Powerhouse: How Some UK Towns Are Leaving the Rest Behind
A new report from Centre for Cities has revealed a striking divergence in economic fortunes across the UK. While many struggle with cost of living pressures, eleven towns and cities – including Warrington, Barnsley, and Wakefield – have seen disposable incomes rise at double the national average over the past decade. This isn’t just about luck; it’s a story of deliberate strategy and a focus on long-term economic growth.
The Growth Divide: What’s Driving the Disparity?
Between 2013 and 2023, these top performers experienced an average 5.2% increase in disposable income, compared to a UK average of 2.4%. Had all UK cities matched this growth, residents would have an extra £3,200 in their pockets. The key? A concentrated effort to build robust local business ecosystems and attract higher-skilled jobs. These aren’t towns relying on traditional industries; they’re fostering innovation in “tradeable” sectors like software, marketing, and finance – industries that can sell beyond their immediate geographic area.
This finding challenges the prevailing approach of governments focusing on short-term fixes like capping bus fares or providing energy bill support. While these measures offer temporary relief, they don’t address the root cause: a lack of sustained economic growth. As Andrew Carter, Chief Executive of Centre for Cities, puts it, “By focusing on tinkering with the symptoms, the government runs the risk of losing sight of the cause.”
Barnsley’s Logistics Boom: A Case Study in Strategic Development
Barnsley provides a compelling example of this strategic approach. Leveraging its location along the M1 corridor, the council proactively opened up industrial land near motorway junctions, fostering the growth of a thriving logistics hub. Since 2015, the town has added 6,000 private service jobs, with a significant proportion being high-skilled roles. This wasn’t achieved in isolation; it was coupled with initiatives to upskill residents, improve transport links, and increase affordable housing options.
Pro Tip: Local authorities should prioritize identifying and nurturing their unique regional advantages. What geographical features, existing infrastructure, or skills base can be leveraged to attract investment and create high-value jobs?
Warrington: The Northern Success Story
Warrington stands out as a particularly impressive case, boasting the highest total economic growth of any location studied (41%). Both economic and disposable income growth have been 2.2 times the national average since 2013. It’s the only city in the North of England with workplace wages exceeding the UK average. This success, according to Carter, involved “tough decisions” – expanding business parks and strategically releasing green belt land for housing development.
The Flip Side: Cambridge’s Cautionary Tale
The report isn’t solely focused on success stories. Cambridge, despite its reputation as a hub of innovation, saw a 3% decline in real-terms disposable income since 2013. A major contributing factor is the high cost of housing, with residents spending 17% of their outgoings on accommodation. If Cambridge had matched the growth of the top 11 performers, residents would have been £10,900 better off over the decade. This highlights the critical importance of addressing housing affordability alongside economic development.
Future Trends: What’s Next for Regional Growth?
Several key trends are likely to shape regional economic growth in the coming years:
- The Rise of the ‘15-Minute City’ Concept: Focusing on creating self-sufficient neighborhoods with access to essential services within a 15-minute walk or cycle. This improves quality of life and reduces reliance on car travel.
- Investment in Green Technologies: Regions that embrace sustainable industries and attract investment in renewable energy, electric vehicle manufacturing, and green building technologies will be well-positioned for future growth.
- Digital Infrastructure and Connectivity: Reliable high-speed internet access is no longer a luxury; it’s a necessity for businesses and residents alike. Investment in digital infrastructure will be crucial for attracting investment and fostering innovation.
- Skills Development and Lifelong Learning: The rapid pace of technological change requires a workforce that is constantly upskilling and reskilling. Collaboration between educational institutions, businesses, and government will be essential.
- Devolution and Local Empowerment: Giving local authorities greater control over their economies and allowing them to tailor policies to their specific needs will be vital.
Did you know? The Centre for Cities report emphasizes that economic growth is not a zero-sum game. When one region thrives, it benefits the entire country through increased tax revenues and a more dynamic economy.
FAQ: Regional Economic Growth
- Q: What is a “tradeable” industry?
A: An industry that can sell its products or services to customers outside the local area, generating income from beyond the immediate region. - Q: Why is economic growth more important than cost of living support?
A: While cost of living support provides temporary relief, economic growth creates sustainable improvements in living standards by increasing incomes and opportunities. - Q: What role does government play in regional economic growth?
A: Government can play a crucial role by investing in infrastructure, supporting skills development, and creating a favorable business environment.
Further research on regional economic trends can be found at Centre for Cities and the Office for National Statistics.
What steps do you think your local council should take to boost economic growth? Share your thoughts in the comments below!
