East of England cities have performed well when assessed against public priorities for growth according to the latest, according to the annual Demos-PwC Good Growth for Cities Index, with Norwich, Luton, Ipswich and Cambridge all making the top 20.
The Index ranks 50 of the UK’s largest cities (generally considered those with populations of at least 350,000 people), plus the London boroughs as a whole, based on people’s assessment of 12 key economic wellbeing factors, including jobs, health, income and skills, as well as work-life balance, house affordability, travel-to-work times, income equality, environment and business start-ups.
For the first time, two new indicators – safety and high street and shops – have been added to the index. The separate GVA analysis included in the report takes into account a city’s sectoral make-up, the impact of the use of the furlough scheme to protect jobs, and rates of Universal Credit claims, Covid infection rates and mobility data to estimate GVA growth for 2021 and 2022.
The report shows that provincial cities are expected to show stronger economic growth than those that are larger and more metropolitan and there is an increased focus from the public on wellbeing, the environment and income distribution.
Simon De Young, Cambridge Market Senior Partner at PwC said:
“It’s encouraging to see so many of the cities in our region performing well in the index, particularly in terms of jobs and incomes. When we look at the difference between areas like Norwich and Southend, it is clear to see the inequalities that local leaders and businesses need to work together to address.
“The report sets out a series of recommendations for policymakers and business to deliver investments in a sustainable and fair way. Each city has its strengths and it is important we look at their individual needs. As we can see, Norwich has seen the highest increase in skills for youth in this years’ index, whereas Cambridge performed very well in jobs, income and health. In Ipswich, work-life balance and new businesses are on the rise, and Southend has seen improvements for skills for adults.
“While there is always room for improvement in any city, I’m confident that the East of England will be positioned well for a strong recovery from the pandemic and a future of levelling up.”
Shifting public priorities for growth
Nationally, jobs and skills, two of the most important variables last year, see significant decreases in their importance in the updated Index, most likely as a result of high levels of confidence in the employment market. In contrast, the environment and income distribution have seen significant increases and the biggest driver for improvement for cities over the last three years has been better work-life balance.
In comparison to the UK average, Cambridge, Chelmsford, Luton and Norwich, all scored above average for income and health. Southend and Chelmsford scored above average for job and owner occupation, but below average for transport, skills for those aged 16-24 and high streets. All cities listed under the East of England region scored below average for house price to earnings, except Norwich.
Karen Finlayson, regional lead for government and health industries at PwC, said:
“Once again, Southern cities dominate this year’s Good Growth Index. It’s clear that regional inequality remains a very clear reality that can’t be ignored. The Government’s Levelling Up White Paper was a welcome acknowledgment of what is a long-term and incredibly complex problem. Every individual city will face its own unique set of challenges and priorities that will need to be addressed through innovative, imaginative and tailored solutions. The provincial cities that are currently performing strongly will now have a different set of needs than larger metropolitan cities, some of which have experienced a period of poor growth.
“The growth we’re seeing in these areas, combined with changing priorities among the public, presents us with a golden chance for a big reset; this is a generational opportunity to accelerate the levelling up agenda. We must capitalise on the growth we’re seeing outside of our larger cities, which is driven in part by an increased focus on wellbeing and fairness, but there is only a small window to act, otherwise we risk drifting back to the status quo.”
