The coalition government announced plans to give English cities outside London more power to raise funds, decide on infrastructure projects, and develop new businesses and jobs. Bespoke 'city deals' would free cities from central government control. The 8 largest cities outside London – the 'core cities' – would be the first to be offered the chance to agree new powers.
Source: Unlocking Growth In Cities, Cabinet Office
Links: Report | Hansard | Speech | DPM press release | BCC press release | Centre for Cities press release | Labour Party press release | 157 Group press release | Public Finance report
Date: 2011-Dec
An article examined the relative contribution of the knowledge-based and the consumption-based sectors to the economic development of cities, using data from the period 1995-2005. The proportion employed in knowledge-based sectors was significantly higher in cities than in the non-city regions, whereas there were no significant differences in the proportion employed in consumption-based sectors between cities and non-city regions.
Source: Andrew Johnston, 'The economic performance of UK cities, 1995-2005: driven by knowledge-based sectors or consumption-based sectors?', European Planning Studies, Volume 19 Issue 12
Links: Abstract
Date: 2011-Dec
The report of an independent review (by Mary Portas) examined the decline of high streets, and set out a strategy designed to revitalize economic and community life in high streets and town centres. It recommended a range of planning policy incentives along with free parking in town centres. A linked research report examined the drivers and barriers that had an impact on the economic and social performance of high streets.
Source: Mary Portas, The Portas Review: An independent review into the future of our high streets, Department for Business, Innovation and Skills | Genecon LLP and Partners, Understanding High Street Performance, Department for Business, Innovation and Skills
Links: Report | Research report | Hansard | DBIS press release | BCC press release | BPF press release | Friends of the Earth press release | FSB press release | Labour Party press release | LGA press release | NEF press release | POS press release | RAC Foundation press release | Guardian report | Inside Housing report
Date: 2011-Dec
A paper examined the effective size of local labour markets. It treated geographic space as continuous, as opposed to a collection of non-overlapping administrative units – thus avoiding problems of mismeasurement of local labour markets. The cost of distance was relatively high – the utility of being offered a job decayed at an exponential rate with distance to the job – so that labour markets were indeed quite 'local'.
Source: Alan Manning and Barbara Petrongolo, How Local Are Labour Markets? Evidence from a spatial job search model, DP1101, Centre for Economic Performance (London School of Economics)
Links: Paper
Date: 2011-Dec
An article examined what 'localism' might mean for the management of local economies. It developed a simple framework to explore localism in the context of relationships between the centre, local government, and communities; and it used this framework to consider what implications the coalition government's localism rhetoric and legislation might have.
Source: Paul Hildreth, 'What is localism, and what implications do different models have for managing the local economy?', Local Economy, Volume 26 Number 8
Links: Abstract
Date: 2011-Dec
A think-tank report examined how local authorities could support social enterprises in their area.
Source: Sophie Hostick-Boakye and Mandeep Hothi, Grow Your Own: How local authorities can support social enterprises, Young Foundation
Links: Report | Young Foundation press release
Date: 2011-Nov
A think-tank report said that the coalition government's proposals for business rate retention by local authorities represented a 'unique opportunity' for local growth. Through greater control of business rates, local authorities would be able to establish better and more sustainable relationships with local businesses, as well as design their own plans for growth. However, the existing proposals cluttered a strong incentive for growth with complex redistributional mechanisms. The report called for bolder implementation of business rates reform, and 'greater self-sufficiency' for local authorities.
Source: Lily Sommer and Daria Kuznetsova, The Devil in the Detail: Designing the right incentives for local economic growth, New Local Government Network
Date: 2011-Nov
An audit report in Scotland said that community planning partnerships needed to build on their economic development activity to help meet local needs. Partnerships should also make better use of available information and improve their understanding of the costs involved in delivering local economic priorities.
Source: The Role of Community Planning Partnerships in Economic Development, Audit Scotland
Links: Report | Audit Scotland press release
Date: 2011-Nov
A think-tank report said that local enterprise partnerships (set up by the coalition government to promote local economic growth) had made only 'limited' progress in their first year. Only two had produced a long-term strategic plan.
Source: Tom Bolton and Ken Coupar, Cause Celebre or Cause for Concern? Local enterprise partnerships one year on, Centre for Cities
Links: Report | Centre for Cities press release | Telegraph report
Date: 2011-Oct
A paper said that the introduction of strong, locally elected mayors provided an opportunity for addressing barriers to local economic growth strategies. The coalition government's proposals in this area did not go far enough.
Source: Kate Blatchford and Sam Sims, Better Mayors: Strengthening government s plans for elected mayors, Institute for Government
Links: Paper
Date: 2011-Jul
A think-tank report said that city mayors in England should be given more powers to promote local economic growth, including decisions over transport, planning, and skills.
Source: Paul Swinney, Rachel Smith, and Kate Blatchford, Big Shot or Long Shot? How elected mayors can help drive economic growth in England s cities, Centre for Cities/Institute for Government
Links: Report | Centre for Cities press release | Public Finance report
Date: 2011-Jun
An article examined whether using business rates as a measure of economic activity would give rise to distortions caused by valuation methodology, liability to pay, or more general differences between property values and economic activity.
Source: Dominic Williams, 'What do business rates measure?', Local Economy, Volume 26 Number 3
Links: Abstract
Date: 2011-May
A commission report said that city councils should be allowed to retain a greater share of business rates generated from new commercial projects, giving them incentives for growth and reducing their reliance on the formula grant from central government.
Source: Setting Cities Free: Releasing the potential of cities to drive growth, City Finance Commission
Links: Report | Public Finance report
Date: 2011-May
A report examined the development of a 'place resilience framework', aimed at providing a model for local enterprise partnerships, local authorities, and their partners to consider the balance of the economy in their locality.
Source: Neil McInroy and Sarah Longlands, Productive Local Economies: Creating Resilient Places, Centre for Local Economic Strategies
Links: Report
Date: 2011-Mar
A study examined the use of public-private local partnerships across European countries to prevent or counteract the effects of the economic crisis on labour markets. Local employment initiatives were found to have played only a limited role: ad hoc measures and programmes had generally been designed and introduced by national authorities.
Source: Claire Duchemin and Pat Irving, Joint Public-Private Local Partnerships for Employment to Cope with the Recession, European Foundation for the Improvement of Living and Working Conditions
Links: Report
Date: 2011-Mar
A think-tank report said that the coalition government should not reintroduce enterprise zones (based on the model conceived in the 1980s), because it would not achieve desired outcomes and would not be cost-effective. Instead, the government should learn from what did and did not work in the 1980s policy, and should introduce a new area-based strategy that focused on investment in people, skills, and business growth.
Source: Kieran Larkin and Zach Wilcox, What Would Maggie Do? Why the government's policy on enterprise zones needs to be radically different to the failed policy of the 1980s, Centre for Cities
Links: Report | Centre for Cities press release
Date: 2011-Feb
A think-tank report said that a new generation of enterprise zones were likely to be ineffective at stimulating sustained growth in depressed areas, and raised major concerns about their cost.
Source: Andrew Sissons with Chris Brown, Do Enterprise Zones Work?, Work Foundation
Links: Report | Work Foundation press release
Date: 2011-Feb
An article examined the barriers to entrepreneurship in deprived urban neighbourhoods, and how policy could help tackle them.
Source: Nick Williams and Colin Williams, 'Tackling barriers to entrepreneurship in a deprived urban neighbourhood', Local Economy, Volume 26 Number 1
Links: Abstract
Date: 2011-Feb
A briefing paper examined local enterprise partnerships – new non-statutory bodies designed to assume many of the responsibilities of the former regional development agencies.
Source: Adam Mellows-Facer, Local Enterprise Partnerships, Standard Note SN/EP/5651, House of Commons Library
Links: Briefing paper
Date: 2011-Feb
Three seminar papers examined the causes of local economic decline, and initiatives that could help to tackle the problem.
Source: Paul Lawless, Henry Overman, and Peter Tyler, Strategies for Underperforming Places, Policy Paper 6, Spatial Economics Research Centre (London School of Economics)
Links: Paper
Date: 2011-Feb
The government responded to a report by a committee of MPs on local enterprise partnerships. It said that regional development agencies (due to be replaced by LEPs) had moved away from their core role and taken on too many diffuse responsibilities, as well as suffering from a lack of local accountability.
Source: The New Local Enterprise Partnerships: An Initial Assessment – Government Response to the Committee's First Report, First Special Report (Session 2010-11), HC 809, House of Commons Business, Innovation and Skills Select Committee, TSO
Links: Response
Notes: MPs report (December 2010)
Date: 2011-Feb