Where are Britain's biggest city economies?

Couldn't work out how to illustrate this so here is a metaphor. Image: Getty.

The latest instalment of our weekly series, in which we use the Centre for Cities’ data tools to crunch some of the numbers on Europe's cities.

We talk a lot, round here, about which are the largest cities by population. (Nerds gonna nerd.) We talk a fair amount, too, about which have the richest residents.

What we don't talk about so much is the intersection of those two factors: which cities have the biggest economies? Where are Britain’s powerhouses and engines really located? London, obviously – but beyond that, what does the league table look like?

Let's fire up the datatron.

The first thing to say is that London is so much bigger than its nearest rivals – so many more people, generating so much more wealth – that it completely knackers the charts. Here's a scatter graph plotting population (of each city's primary urban area, explained here) against GVA (gross value added, a measure of economic output).

See if you can somehow pick London out of the crowd:

Let’s take it as read that London is far bigger than the other cities. To make these charts look in any way meaningful we're going to have to drop the capital.

Here's a bar chart showing the 20 largest city economies outside London.

GVA in £bn. Image: Centre for Cities.

Unsurprisingly, Manchester and Birmingham are way, way ahead of the pack. What’s perhaps more unexpected is that, at least on this measure, the Manchester economy is slightly bigger. I thought this might be a quirk of the population data – using a definition on which Manchester simply has more people than Birmingham – but surprisingly, no.


That said, there's not a lot of space between them. They're of the same order of magnitude, and a long way ahead of the next cities down. Which gets to be second city is an unanswerable question, but nowhere else is really in the running for the title.

There are a few more surprises in the next bit of the chart. That Bristol would have a bigger economy than Leeds, for example: maybe this is me making dodgy assumptions, but Leeds feels like it should be on the next level up from Bristol, not struggling to keep up with it. And yet.

Similarly, it's striking that Reading’s economy is nearly as big as Nottingham's, and that Cardiff is out performed by Bournemouth, Milton Keynes and Southampton. As ever, it's one thing to know there's a north-south divide in theory. But Reading? On a par with Sheffield?

Part of this is down to size, of course – more people will mean a bigger economy, generally speaking. So here's that scattergraph again, without London this time. This time it's interactive, so you can hover over a dot to find out which city it is and get the data.

 

There's a clear correlation between the two variables (duh). But it's not perfect. Dots that are higher than they should be represent cities that are outperforming the average (economies bigger than you'd expect for a given population); dots that are lower than they should be are the opposite.

Reading is on one side of that notional line; Sheffield on the other. You can probably guess which way round.

Jonn Elledge is the editor of CityMetric. He is on Twitter as @jonnelledge and also has a Facebook page now for some reason. 

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Brexit is an opportunity for cities to take back control

Leeds Town Hall. Image: Getty.

The Labour leader of Leeds City Council on the future of Britain’s cities.

As the negotiations about the shape of the UK’s exit from the EU continue, Britain’s most economically powerful cities outside London are arguing that the UK can be made stronger for Brexit – by allowing cities to “take back control” of service provision though new powers and freedoms

Core Cites UK, the representative voice of the cities at the centre of the ten largest economic areas outside London, has just launched an updated version of our green paper, ‘Invest Reform Trust’. The document calls for radical but deliverable proposals to allow cities to prepare for Brexit by boosting their productivity, and helping to rebalance the economy by supporting inclusive economic growth across the UK.

Despite representing areas responsible for a quarter of the UK’s economy and nearly a third of exports, city leaders have played little part in the development of the government’s approach to Brexit. Cities want a dialogue with the government on their Brexit plans and a new settlement which sees power passing from central government to local communities.

To help us deliver a Brexit that works for the UK’s cities, we are opening a dialogue with the EU Commission’s Chief Negotiator Michel Barnier to share our views of the Brexit process and what our cities want to achieve.

Most of the changes the Core Cities want to see can already be delivered by the UK. To address the fact that the productivity of UK cities lags behind competitors, we need to think differently and begin to address the structural problems in our economy before Brexit.

International evidence shows that cities which have the most control over taxes raised in their area tend to be the most productive.  The UK is significantly out of step with international competitors in the power given to cities and we are one of the most centralised countries in the world.  


Boosting the productivity of the UK’s Core Cities to the UK national average would increase the country’s national income by £70-£90bn a year. This would be a critical boost to the UK’s post-Brexit economic success.

Our green paper is clear that one-size fits all policy solutions simply can’t deal with the complexities of 21st century Britain. We need a place-based approach that looks at challenges and solutions in a different way, focused on the particular needs of local communities and local economies.

For example, our Core Cities face levels of unemployment higher than the national average, but also face shortages of skilled workers.  We need a more localised approach to skills, education and employment support with greater involvement from local democratic and business leaderships to deliver the skills to support growth in each area.

The UK will only make a success of Brexit if we are able to increase our international trade. Evidence shows city to city networks play an important role in boosting international trade.  The green paper calls for a new partnership with the Department of International trade to develop an Urban Trade programme across the UK’s cities and give cities more of a role in international trade missions.

To deliver economic growth that includes all areas of the UK, we also need to invest in our infrastructure. Not just our physical infrastructure of roads, rail telecommunications and so forth, but also our health, education and care infrastructure, ensuring that we are able to unlock the potential of our core assets, our people.

Whether you think that Brexit is a positive or a negative thing for the UK, it is clear that the process will be a challenging one.  Cities have a key role to play in delivering a good Brexit: one that sees local communities empowered and economic prosperity across all areas of the UK.

Cllr Judith Blake is leader of Leeds City Council.