How the UK can learn how to turn around its cities

In Britain’s serviced-based economy, cities should be thriving. But major cities outside London are less productive than the national average. So, what can be done to turn them around?

Professor Philip McCann is a Co-Investigator at The Productivity Institute and the Chair of Urban and Regional Economics at 英国曼彻斯特大学 and a co-author of Turnaround Cities .

This report, published by Resolution Foundation , arose from eight case studies of cities that had been hit by de-industrialisation in the 1970s and 80s but successfully turned their fortunes around.

The cities profiled were Lille (France), Bilbao (Spain), Pittsburgh (United States), Newcastle (Australia), Windsor (Canada) and Dortmund, Leipzig, and Duisburg (Germany).

These cities are not perfect now, but their transformations over the past 30-50 years have been remarkable. And the common thread has been for communities to work together on a long-term strategy.

The report found all eight cities had a singular and inclusive long-term vision and focus underpinned by consistent funding, leveraged their existing strengths and were guided by a united leadership.

It suggests the UK can learn from these turnaround cities by:

• Giving decision making autonomy and power over the long-term for local leaders. Devolved areas for decision making need to make economic sense, be at scale and locally tailored. Most devolved decision-making units in the UK are too small and fragmented, making coordination limited.
• Creating meso-level institutions with real power that cover the large regional areas between the national and local levels - the missing middle - are critical for allowing the building of scale with coordination and credibility. The UK’s pyramid-shaped governance system is ill-equipped to help.
• Integrate spatial and land use planning with economic development plans.
• Provide finance for local startups and SMEs.

What could the UK do now?

Philip McCann says the first step the UK needs take is to change in governance system which hinders devolved decision making. The UK is unique within the OECD and very centralised. Giving regions greater fiscal autonomy – to be able to make their own decisions with their own resources rather than waiting for central government – is key to starting the road towards more productive UK cities. He’s written about this extensively in an Insight Paper for The Productivity Institute The fiscal implication of levelling up and UK governance devolutions .?

Further reading:

• Read the report, Turnaround cities: how post-industrial cities around the world have transformed their economies

Read the full case studies:

• Western Europe – Lille, France, and Bilbao, Spain
• Anglo-Saxon – Pittsburgh, United States; Newcastle, Australia; and Windsor, Canada
• Germany – Dortmund, Duisburg and Leipzig

The Productivity Institute is UK-wide research organisation exploring what productivity means for business, for workers and for communities - how it is measured and how it truly contributes to increased living standards and well-being. It is funded by ESRC: Economic and Social Research Council .