The UK has a problem: outside London our cities underperform. They fail to generate as much wealth as they should and many are net drains on the public purse. That’s not the case in every country – the UK is unusual in its concentration of wealth and power in one big city.
In part 1 of my article I set out the first three of the six steps cities need to take to turn that situation around. In this concluding part I identify the final three steps.
Step four: create more employment
The study “Investing in City regions” (2014) by Volterra Partners identifies a correlation between employment density and earnings. Where employees are packed in more closely together, they tend to earn more and work in more knowledge-intensive industries. Employment areas are ten times denser in parts of London than in Manchester. Of course, denser employment makes transportation even more important and reduces the role of the car.