The Role of the Regions
The Role of UK Regional Cities
- The largest UK cities are major direct and indirect contributors to the national economy, accounting for 61% of GDP.
- With industrial strengths, innovation hubs, and educational institutions, the regional UK cities support technological advancement, national industry and green initiatives.
- The housing programmes of the regional UK cities are increasingly important in facilitating an evenly distributed economy.
- The inherent connectivity of the regional UK cities is vital for supporting domestic and international trade.
Meet the new boss, same as the old boss?
- The "levelling up" moniker may have been consigned to history, but the new Labour Government continues to recognise the need to address regional disparities.
- Labour's approach emphasises empowering local authorities, decentralising power, and integrating environmental sustainability into planning and infrastructure development.
- Investment in regional initiatives and infrastructure could be a major driver of real estate activity.
- Fiscal constraints pose a major stumbling block.
The Role of UK Regional Cities
- The largest UK cities are major direct and indirect contributors to the national economy, accounting for 61% of GDP.
- With industrial strengths, innovation hubs, and educational institutions, the regional UK cities support technological advancement, national industry and green initiatives.
- The housing programmes of the regional UK cities are increasingly important in facilitating an evenly distributed economy.
- The inherent connectivity of the regional UK cities is vital for supporting domestic and international trade.
Meet the new boss, same as the old boss?
- The "levelling up" moniker may have been consigned to history, but the new Labour Government continues to recognise the need to address regional disparities.
- Labour's approach emphasises empowering local authorities, decentralising power, and integrating environmental sustainability into planning and infrastructure development.
- Investment in regional initiatives and infrastructure could be a major driver of real estate activity.
- Fiscal constraints pose a major stumbling block.
The Role of UK Regional Cities
Authors: Jodie Gibson & Darren Mansfield
The UK's cities are crucial to the UK economy, contributing 61% of the national GDP. Greater Manchester alone generates £90 billion in Gross Value Added (GVA), while Birmingham contributes £85 billion annually.
The unique strengths of these regional cities help diversify the economy. For example, Manchester excels in media, technology, and finance, while Birmingham remains a leader in automotive manufacturing, producing one-third of British cars. Leeds is the second-largest financial centre in England, and Glasgow's £48 billion economy thrives on shipbuilding, engineering, and renewable energy. These cities serve as major employment hubs, easing economic pressure on London and supporting balanced growth.
The Role of UK Regional Cities
Authors: Jodie Gibson & Darren Mansfield
The UK's cities are crucial to the UK economy, contributing 61% of the national GDP. Greater Manchester alone generates £90 billion in Gross Value Added (GVA), while Birmingham contributes £85 billion annually.
The unique strengths of these regional cities help diversify the economy. For example, Manchester excels in media, technology, and finance, while Birmingham remains a leader in automotive manufacturing, producing one-third of British cars. Leeds is the second-largest financial centre in England, and Glasgow's £48 billion economy thrives on shipbuilding, engineering, and renewable energy. These cities serve as major employment hubs, easing economic pressure on London and supporting balanced growth.
Innovation and Technology
UK cities are at the forefront of innovation. The Oxford-Cambridge Arc is a region of innovation excellence, contributing over £111 billion to the UK economy.
Manchester has become a hub for the digital and creative industries, housing MediaCityUK, with the city's digital sector valued at £5bn. Dundee is a gaming industry hub, home to the Grand Theft Auto franchise. This knowledge-based economy ensures the UK's competitiveness on a global stage.
Transport and Connectivity
Connectivity is essential for trade. Manchester Airport, the UK's third busiest, handles 27 million passengers annually and contributes £5.7 billion to the regional economy, while Birmingham Airport serves 11.5 million passengers.
Projects like HS2, connecting London to Birmingham, are expected to boost the economy by £10 billion. Northern Powerhouse Rail aims to improve connectivity between northern cities, potentially adding £22 billion to the economy by 2060.
Sustainability Goals
Regional cities are advancing the UK's sustainability goals. Nottingham aims to become carbon-neutral by 2028, while Bristol, the UK's first European Green Capital, targets carbon neutrality by 2030.
Glasgow and Hull are key players in renewable energy, underpinning the nation's transition to a zero-carbon economy. The creation of Great British Energy, headquartered in Scotland, further demonstrates the UK's commitment to sustainable growth.
Education and Skills
Collaboration between education providers and businesses is essential to economic success. The UK regional cities host major universities that drive innovation.
The University of Manchester contributes £1.7 billion to the economy, while Birmingham's and Leeds' universities support the engineering and financial services sectors. Sheffield is a centre for vocational training, particularly in advanced manufacturing. Universities increasingly align their curricula with industry needs, especially in high-growth sectors, positioning cities with strong educational institutions as crucial innovation hubs.
Culture and Tourism
The UK's regional cities are cultural centres and tourism hubs. Edinburgh's Festival Fringe attracts 3 million visitors annually, generating £620 million.
Liverpool's musical heritage contributes £5 billion, and Glasgow, a UNESCO City of Music, supports thousands of jobs. Cardiff's cultural tourism contributes £1.3 billion annually.
International Trade
Regional cities like Birmingham and Manchester are major export hubs. Birmingham's export market was valued at £7.4 billion in 2021, driven by automotive manufacturing.
The same year, bolstered by its global connections, Manchester exported goods worth £6.3 billion. Expanding digital infrastructure will further integrate regional cities into the global economy.
Economic Contribution, Balance and Resilience
Regional cities are crucial in ensuring economic balance and resilience and distributing wealth and opportunities outside of London.
While London's GVA per capita is £57,000, cities like Sheffield have a GVA closer to £28,000. During economic shocks, strong regional economies, such as those of Leeds and Bristol, have helped the UK recover, with Leeds bouncing back after a 5.2% contraction in 2020 and Bristol's growing by 10.1% in 2022.
Housing and Development
Urban regeneration projects, including Newcastle's £330 million Gateshead Quays project and the £5 billion Liverpool Waters development, revitalise local economies and create jobs.
Manchester plans to build 36,000 new homes by 2032 to accommodate a growing population. The release of green belt land to achieve ambitious housebuilding targets will be a controversial but potentially transformative policy.
Conclusion
The UK's regional cities are pivotal in defining the national economic landscape and essential in fostering an equitable and sustainable economic future. With unique industrial strengths, innovation hubs, and educational institutions, regional cities contribute substantially to the national GDP while advancing technology, culture, and green initiatives. The ongoing infrastructure, housing, and international trade development further underscore the role as critical economic engines. As the UK continues to adapt to global changes and domestic challenges, the role of its regional cities will be crucial in shaping a balanced, dynamic, and sustainable economic trajectory.
Conclusion
The UK's regional cities are pivotal in defining the national economic landscape and essential in fostering an equitable and sustainable economic future. With unique industrial strengths, innovation hubs, and educational institutions, regional cities contribute substantially to the national GDP while advancing technology, culture, and green initiatives. The ongoing infrastructure, housing, and international trade development further underscore the role as critical economic engines. As the UK continues to adapt to global changes and domestic challenges, the role of its regional cities will be crucial in shaping a balanced, dynamic, and sustainable economic trajectory.
Meet the new boss, same as the old boss?
Authors: Darren Mansfield & Jodie Gibson
Meet the new boss, same as the old boss?
Authors: Darren Mansfield & Jodie Gibson
In recent years, UK policy has focused on reducing regional disparities in growth, investment, and opportunity, with mixed progress in areas like economic development, housing, infrastructure, education, and climate change.
The Conservative Party's "levelling up" initiative sought to boost regional growth but faced delays and inefficiencies in key projects. After coming to power in 2024, Labour shifted focus to devolving power to local governments, aiming to reduce disparities by increasing local fiscal autonomy. However, success depends on overcoming financial and administrative challenges.
The start of a new parliament offers a chance to reassess some of the key strategy components.
In recent years, UK policy has focused on reducing regional disparities in growth, investment, and opportunity, with mixed progress in areas like economic development, housing, infrastructure, education, and climate change.
The Conservative Party's "levelling up" initiative sought to boost regional growth but faced delays and inefficiencies in key projects. After coming to power in 2024, Labour shifted focus to devolving power to local governments, aiming to reduce disparities by increasing local fiscal autonomy. However, success depends on overcoming financial and administrative challenges.
The start of a new parliament offers a chance to reassess some of the key strategy components.
Civil Service
Both the Conservative and Labour parties have pushed for relocating civil service jobs outside London to address regional inequality. The Conservatives planned to move 22,000 jobs by 2027, while Labour proposed moving up to 50,000.
The relocation of these jobs could drive demand for commercial real estate in regional cities, as evidenced by the approval of new government office developments in Darlington and York. However, concerns remain over whether such relocations contribute to meaningful regional development or shift jobs without retaining experienced staff, as seen with the Office for National Statistics' move to Newport.
Transport
Infrastructure is crucial for the growth of regional cities. The Conservatives' "levelling up" agenda included significant investments in road and rail, such as HS2, but encountered cost overruns, technical difficulties, and delays. Labour has pledged a 10-year infrastructure strategy, which includes nationalising railways, expanding public transport, and prioritising greener options.
These developments are essential for economic growth and boosting demand for commercial real estate. However, funding Labour's ambitious plans, including establishing Great British Railways, will be challenging given current public budget pressures.
Digital Infrastructure
The expansion of digital infrastructure is a critical aspect of modern economies. The Conservative government aimed for full gigabit broadband and 5G coverage but was slowed by an estimated £25 billion investment gap. Labour has committed to achieving nationwide gigabit broadband and 5G coverage by 2030, particularly in underserved areas.
This expansion could boost the demand for specialised commercial properties like data centres and laboratories, although the rollout's slow pace under the Conservatives has already delayed some opportunities. Labour's plans to accelerate this could be beneficial, but success depends on overcoming regulatory and financial barriers.
Civil Service
Both the Conservative and Labour parties have pushed for relocating civil service jobs outside London to address regional inequality. The Conservatives planned to move 22,000 jobs by 2027, while Labour proposed moving up to 50,000.
The relocation of these jobs could drive demand for commercial real estate in regional cities, as evidenced by the approval of new government office developments in Darlington and York. However, concerns remain over whether such relocations contribute to meaningful regional development or shift jobs without retaining experienced staff, as seen with the Office for National Statistics' move to Newport.
Transport
Infrastructure is crucial for the growth of regional cities. The Conservatives' "levelling up" agenda included significant investments in road and rail, such as HS2, but encountered cost overruns, technical difficulties, and delays. Labour has pledged a 10-year infrastructure strategy, which includes nationalising railways, expanding public transport, and prioritising greener options.
These developments are essential for economic growth and boosting demand for commercial real estate. However, funding Labour's ambitious plans, including establishing Great British Railways, will be challenging given current public budget pressures.
Digital Infrastructure
The expansion of digital infrastructure is a critical aspect of modern economies. The Conservative government aimed for full gigabit broadband and 5G coverage but was slowed by an estimated £25 billion investment gap. Labour has committed to achieving nationwide gigabit broadband and 5G coverage by 2030, particularly in underserved areas.
This expansion could boost the demand for specialised commercial properties like data centres and laboratories, although the rollout's slow pace under the Conservatives has already delayed some opportunities. Labour's plans to accelerate this could be beneficial, but success depends on overcoming regulatory and financial barriers.
Planning and Sustainability
Labour's planning reforms give local authorities more control over development while promoting environmental sustainability. However, introducing ministerial determination, which allows ministers to intervene in planning decisions, could undermine local autonomy.
Labour aims to prioritise development on brownfield and Grey Belt sites to protect Green Belt areas. The emphasis on environmental standards could complicate and increase the cost of commercial development, potentially slowing the pace of new projects.
Climate Change
Both parties approach climate change differently. Labour's ambitious target of achieving net-zero emissions by 2030 contrasts with the Conservative's more incremental 2050 target. Labour plans to create over a million green jobs through renewable energy projects and retrofitting homes for energy efficiency.
This focus on green jobs and sustainable energy, such as offshore wind, could transform regional cities into hubs for renewable energy, driving demand for commercial real estate in these areas. However, the cost of meeting higher regulatory standards for green buildings could raise the value of properties that comply.
Education
Education and skills development are vital to boosting regional cities' economies. While the Conservative Party emphasised vocational training, Labour focuses on free education and lifelong learning. Graduate retention remains a challenge for regional cities, although there have been improvements in cities like Bristol and Manchester.
Successful skills development and retention of graduates would stimulate economic growth and boost demand for commercial properties in these cities. However, failure to retain talent could hinder the development of commercial centres.
Planning and Sustainability
Labour's planning reforms give local authorities more control over development while promoting environmental sustainability. However, introducing ministerial determination, which allows ministers to intervene in planning decisions, could undermine local autonomy.
Labour aims to prioritise development on brownfield and Grey Belt sites to protect Green Belt areas. The emphasis on environmental standards could complicate and increase the cost of commercial development, potentially slowing the pace of new projects.
Climate Change
Both parties approach climate change differently. Labour's ambitious target of achieving net-zero emissions by 2030 contrasts with the Conservative's more incremental 2050 target. Labour plans to create over a million green jobs through renewable energy projects and retrofitting homes for energy efficiency.
This focus on green jobs and sustainable energy, such as offshore wind, could transform regional cities into hubs for renewable energy, driving demand for commercial real estate in these areas. However, the cost of meeting higher regulatory standards for green buildings could raise the value of properties that comply.
Education
Education and skills development are vital to boosting regional cities' economies. While the Conservative Party emphasised vocational training, Labour focuses on free education and lifelong learning. Graduate retention remains a challenge for regional cities, although there have been improvements in cities like Bristol and Manchester.
Successful skills development and retention of graduates would stimulate economic growth and boost demand for commercial properties in these cities. However, failure to retain talent could hinder the development of commercial centres.
Conclusion
Efforts to address geographical inequality in the UK have proven complex and difficult to implement. The Conservative "levelling up" agenda struggled with execution, while Labour's focus on decentralisation and sustainability offers a different, albeit challenging, approach. Success will require significant financial investment, overcoming local resistance, and balancing economic growth with environmental protection. Achieving geographical equality will demand a long-term, concerted effort across multiple fronts.
Conclusion
Efforts to address geographical inequality in the UK have proven complex and difficult to implement. The Conservative "levelling up" agenda struggled with execution, while Labour's focus on decentralisation and sustainability offers a different, albeit challenging, approach. Success will require significant financial investment, overcoming local resistance, and balancing economic growth with environmental protection. Achieving geographical equality will demand a long-term, concerted effort across multiple fronts.