It’s a KIBS thing: Are some British cities going backwards?

Knowledge-intensive business services, 1890s style. Image: Hulton Archive/Getty.

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

We haven't talked about KIBS in a while, have we? Let's talk about KIBS.

"Knowledge Intensive Business Services" are, basically, the high-skill, high-value bit of the modern economy. In short, you can break an economy up into extraction, manufacturing, agriculture, and services. It's the latter that generates most of the wealth in advanced economies, but not all services are equal: there is much more money to be made in accountancy, say, than there is in retail. At any rate: if you want your city to be rich, you generally want more of those delicious KIBS.

So this, on the whole, is a bit worrying:

In the first half of the decade, KIBS fell as a share of the economy in no fewer than 23 of the 63 cities in our database. And not all of these cities are places you'd associate with economic problems, either: they struggling cities like Dundee, Swansea and Burnley, but also richer ones like Edinburgh, Aberdeen and Milton Keynes.

The decade started rather bumpily, so I checked if this as just a recession thing by checking if the pattern held if you started counting in later years. Starting the clock in 2013, things were different. Now there were 27 cities where the KIBS had shrunk. Right.

So what's going on? Couple of theories. One is that they've lost some good jobs: in the smaller of these economies (Slough, Worthing), the loss of one significant company is probably enough to make a noticeable dent in the figures. Another possibility is that they haven't lost KIBS jobs – might even have gained them – but that other, generally less productive sectors have grown faster.

What is clear is that there is, perhaps surprisingly, no obvious link with incomes. Check out this scatter graph which plots the change in KIBS with the change in weekly wages. There is, and I'm being charitable here, no correlation whatsoever. It’s a correlation coefficient of 0.04, which is basically invisible.

Click to expand.

 

Which suggests that maybe seeing the share of your economy devoted to KIBS shrink by 2 per cent really just doesn't matter that much. Perhaps there are other well-paying jobs replacing them, which aren’t classed as KIBS because there’s a quirk of the data. More likely, I suspect, there’s a mismatch between the two datasets: the KIBS one shows what happens inside a city’s economy, whereas the wages one includes people who live there but work elsewhere. What happens in Worthing is probably less important to its residents than what happens in London.

And yet, and yet... Here's another scatter graph showing weekly wages against KIBS. Unlike the last one, though, this isn't change over time: it's the figures for a single year, 2015.

Click to expand.

That very definitely is a correlation: a coefficient of 0.66, which is pretty bloody strong.

So: KIBS-heavy cities do still do a lot, lot better: perhaps the changes in that earlier dataset are simply too small to have much of an impact.


The lesson here seems to be that a city can see the share of its economy devoted to high-value business services shrink a little without consequence. But if it starts dropping like a stone, people are going to get a lot, lot poorer.

Anyway, to sum up, I'm sure Brexit will be completely and utterly fine.

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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Academics are mapping the legacy of slavery in Britain’s cities

A detail of the Legacies of British Slave-ownership map showing central Bristol. Image: LBS/UCL.

For 125 years, a statue of the 17th century slave-trader Edward Colston stood in the centre of Bristol, ostensibly to commemorate the philanthropy he’d used his blood money to fund. Then, on 7 June, Black Lives Matter protesters pulled it down and threw it into the harbour

The incident has served to shine a light on the benefits Bristol and other British cities reaped from the Atlantic slave trade. Grand houses and public buildings in London, Liverpool, Glasgow and beyond were also funded by the profits made from ferrying enslaved Africans across the ocean. But because the horrors of that trade happened elsewhere, the role it played in building modern Britain is not something we tend to discuss.

Now a team at University College London is trying to change that. The Legacies of British Slave-Ownership project is mapping every British address linked to a slave-owner. In all, its database contains 5,229 addresses, linked to 5,586 individuals (some addresses are linked to more than one slave owner; some slave owners had more than one home). 

The map is not exact. Streets have often been renumbered; for some individuals, only a city is known, not necessarily an address; and at time of writing, only around 60% of known addresses (3,294 out of 5,229) have been added to the map. But by showing how many addresses it has recorded in each area, it gives some sense of which bits of the UK benefited most from the slave trade; the blue pins, meanwhile, reflect individual addresses, which you can click for more details.

The map shows, for example, that although it’s Glasgow that’s been noisily grappling with this history of late, there were probably actually more slave owners in neighbouring Edinburgh, the centre of Scottish political and financial power.

Liverpool, as an Atlantic port, benefited far more from the trade than any other northern English city.

But the numbers were higher in Bristol and Bath; and much, much higher in and around London.

 

Other major UK cities – Birmingham, Manchester, Leeds, Newcastle – barely appear. Which is not to say they didn’t also benefit from the Triangular Trade (with its iron and weaponry industries, Professor David Dabydeen of Warwick University said in 2007, “Birmingham armed the slave trade”) – merely that they benefited in a less direct way.

The LBS map, researcher Rachel Lang explained via email, is “a never-ending task – we’re always adding new people to the database and finding out more about them”. Nonetheless, “The map shows broadly what we expected to find... We haven’t focused on specific areas of Britain so I think the addresses we’ve mapped so far are broadly representative.” 

The large number in London, she says, reflect its importance as a financial centre. Where more specific addresses are available, “you can see patterns that reflect the broader social geography”. The high numbers of slave-owners in Bloomsbury, for example, reflects merchants’ desire for property convenient to the City of London in the late 18th and early 19th centuries, when the district was being developed. Meanwhile, “there are widows and spinsters with slave property living in suburbs and outlying villages such as Chelsea and Hampstead. Country villas surround London.” 


“What we perhaps didn’t expect to see was that no areas are entirely without slave owners,” Lang adds. “They are everywhere from the Orkney Islands to Penzance. It also revealed clusters in unexpected places – around Inverness and Cromarty, for example, and the Isle of Wight.” No area of Britain was entirely free of links to the slave trade.

 You can explore the map here.

Jonn Elledge was founding editor of CityMetric. He is on Twitter as @jonnelledge and on Facebook as JonnElledgeWrites.

All images courtesy of LBS/UCL