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Northern regions need to create new economic opportunities as the route out of recession

16 October 2009

ippr north’s new report, The Impact of the Recession on the Northern City Regions, uses detailed analysis of unemployment data to show that, as a general rule, those areas within northern city-regions that were left behind in the boom years have suffered most in the recession. It explains that the northern city regions have been hit by a ‘triple whammy’ effect in the recession:

  • Unemployment has increased most in the areas where it was already highest, in part due to the prevalence of low value-added manufacturing in these regions. For example, between March 2008 and September 2009 unemployment has risen by 3.1% and 3.4% in Yorkshire & Humber and the North East respectively but just 2.1% in London.
  • Certain housing-led regeneration efforts have been hit hard.
  • Some deprived areas would be likely to be badly hurt by future government spending cuts.
  • The report stresses that from now on, any reliance on a ‘trickle-down’ approach to regeneration must be questioned, proactive policy-making must happen to ensure that the North returns to growth and that people living in disadvantaged parts of the northern regions, have direct access to economic opportunities and benefits.

Ed Cox, Director of ippr north said:

“In recent years Northern city-regions have been the focus of efforts to revitalise old industrial towns and cities and have witnessed considerable economic growth. Through strong leadership and strategic vision, significant steps have been taken to transform city-regional cores.

“However, times have changed and businesses are likely to face more difficulties in accessing credit. Central and local government, regional bodies and businesses need to work together to come up with innovative financial solutions to ensure investment in infrastructure and transport is maintained. Building on its strong track record of co-operation and enterprise will allow the north to lead the way in addressing the challenges of the next few years.”

Further steps must be taken to ensure that the North’s old dependencies on low value-added manufacture and public sector employment are broken. If this is to be achieved, the Northern regions must attract the jobs of the future in areas such as green and creative technologies. And to make a real impact on deprivation, efforts should be clearly targeted at areas of most stubborn deprivation like Hull, Liverpool and South Teesside, which have the highest unemployment rates within the northern city regions.

Notes to Editors

  1. The Impact of the Recession on Northern City Regions by Tony Dolphin is available to download.
  2. The eight northern city regions analysed in this study are Central Lancashire, Hull and Humber Ports, Leeds, Liverpool, Greater Manchester, Sheffield, Tees Valley and Tyne and Wear.
  3. This paper has been prepared as part of the evidence base for the ‘Making City Regions Work for Deprived Communities’ programme being undertaken by ippr north with the Joseph Rowntree Foundation and the Northern Way. It aims to understand why, earlier in this decade, some areas within the North of England remained deprived, even when the surrounding economy was performing strongly; to explore how deprived areas can be better linked to areas of opportunity; to consider the roles of local, city-regional, regional and national bodies; and to inform the next generation of policies targeted at deprived communities.
  4. The impact of the recession across the UK has been very uneven. Although there have been very large increases in unemployment in some towns and cities in the southern half of the country -  such as Swindon – the biggest increases have generally been in the West Midlands, Northern England and Northern Ireland.
  5. This month ippr north welcomes Ed Cox as its new Director. Ed comes to ippr north with a vision to make the north of England the place to be for progressive policy-making and the belief that the north is best when it is leading innovation rather than pleading with Whitehall. Ed is keen to drive closer integration between ippr offices and activities in Newcastle and London and also to broaden the organisation’s reach from the North East into Yorkshire, Humber and the North West.
  6. Ed will begin his time in the role with an extensive programme of visits and meetings with a view to shaping an ippr north programme of research and activity that meets the challenges of local and regional policy-making at a time of political, economic, social and environmental upheaval and where devolved solutions are widely recognised to be the order of the day. Ed can be contacted on e.cox@ippr.org.

Contacts

Kelly O’Sullivan, media officer, 02074706125 / 07753719289 / k.osullivan@ippr.org

Tim Finch, Director of Strategic Communications, 020 7470 6106 / 07595 920 899 / t.finch@ippr.org