The research outlines the government's approach to economic development and the role of cities as drivers of economic growth. It offers an economic definition of cities and city-regions and looks at their effect on the English economy. It also discusses why cities are important for regional economic performance. The report compares the performance of English cities domestically and against European counterparts. It considers the opportunities and challenges facing the United Kingdom economy and explores the reasons underlying the current performance of English cities, focusing on employment, skills, investment, innovation, enterprise and competition. It discusses the implications for future policy-making.

The research was carried out in the context of the government’s drive to enhance the economic performance of cities and their surrounding regions, with the overall aim of increasing employment, prosperity and standard of living for all.

The research takes the form of a literature review.

Cities are centres of production and consumption, and therefore drive economic performance. As most English people live and work in cities, the benefits to standard of living of economically strong cities are self-evident. Skills, employment and transport are key to lifting economic performance. Devolution of decision-making to local areas is identified as the best way forward. A long-term, strategic view of cities’ economic development must be adopted. City-regions must collaborate with one another.

HM Treasury
Phone: +44 20 7270 4558
public.enquiries@hm-treasury.gov.uk

01/03/2006

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HM Treasury

research

Urban Policy > Economy knowledge & employment

Urban economy