POLITICS Cities will play a


part in recovery Covid-19 has brought the so-called “jobs miracle” of the previous decade to an abrupt halt – and cities will play a key role if the UK is to return to this period of economic strength, believes the Centre for Cities. Between 2013 and 2019, 19.3 million positions were created in the private sector, generating a net of 2.7 million new jobs – of which 63.9% were generated within British cities – the think-tank’s research found. Since then, the pandemic’s economic damage has triggered the deepest economic recession on record in the UK and reversed the “jobs miracle” by increasing the number of unemployed people by 1.3 million between March and November 2020. To get these people back into work, an


Development around Toton and Chetwynd


“We are united in our support for the proposed East Midlands Development Corporation as this is our opportunity to unlock growth and create tens of thousands of new jobs to benefit generations to come. We are asking the Government to invest in our communities as we have built a vision to attract inward investors from all over the world – for every £1 invested, we will deliver £2 back.” Nottinghamshire County Council outgoing leader Councillor Kay Cutts


Ratcliffe-on-Soar Power Station is earmarked for redevelopment for green energy use


“When the region does well, so too does the airport and vice versa. It’s therefore in all of our interests that the East Midlands prospers – and the airport, which is our doorway to the world, will continue to play a key role in this.” East Midlands Airport managing director Clare James


The business case will be considered by Government, which revealed in the budget that the East Midlands had been chosen as the site of one of eight new freeports in England. While it requires Westminster approval, the


organisation will be locally-led and supported by cash from local business rates – giving the region’s businesses a stake in its progress. The five councils initially backing the interim


vehicle are Leicestershire and Nottinghamshire county councils, together with Rushcliffe and Broxtowe borough councils, and North West Leicestershire District Council. Talks on how the model can be extended further into the East Midlands are continuing.


“These are bold plans designed to transform the East Midlands and unlock thousands of much-needed new jobs and investment. And by advancing our green technology sector, they create a good opportunity to put our region firmly on the map. Like other areas, our economy has taken a big hit during the pandemic and I’m keen we seize every opportunity to bolster Covid recovery and support our businesses to bounce back quickly.” Leicestershire County Council leader Councillor Nick Rushton


“The freeport has been a fantastic win for the region and we are now working with partners to deliver it at pace. The proposed East Midlands Development Corporation will provide significant investments to accelerate and sustain our region’s economic recovery and growth.” D2N2 Local Enterprise Partnership chair Elizabeth Fagan CBE


“The goal of the Development Corporation is to ensure the East Midlands is equipped to take full advantage of the boundless business opportunities of the future, and to make our region the place for long-term investment.” Leicester and Leicestershire Enterprise Partnership chair Kevin Harris


estimated 9.4 million jobs will need to be created, presuming a similar churn pattern persists post-pandemic. The Centre for Cities presented its


findings from a report, titled Building back better: How to recover from Covid-19, during a webinar in late March. Senior analyst Kathrin Enenkel (pictured),


co-author of the report, said in an accompanying podcast: “About seven jobs were created to generate a net single private sector role, so this churn of jobs will have an impact on how we think about the recovery after the crisis. “When we look at our 62 cities and large


towns across the UK, they had a very big contribution to job creation in the UK.” She said the 10 largest cities, including


London, accounted for 3.5% of UK land mass but half of private sector jobs created between 2013 and 2019. New businesses were the engines of this


job growth, creating 3.7 million more positions than they lost during this period, while existing firms lost just short of a million than they created. At sector level, “local services” companies


in industries such as construction and hospitality accounted for two-thirds of the new roles, with “exporting services” such as car manufacturing and investment banking generating a smaller share. “When we look at the crisis, we find that


sectors affected by coronavirus lockdown restrictions were large contributors to pre- pandemic job creation,” added Kathrin. “Their recovery is likely to have a big


impact on how many jobs are created after the pandemic.” While the Centre for Cities report urged


Government to support job creation in these sectors with consumer incentives and skills development, it also highlighted a productivity problem that needs to be addressed – with output just 2.3% higher in 2019 than 2013 despite the “jobs miracle”. To boost productivity, it recommended


measures such as supporting R&D via more generous grants and tax credits, and removing the business rates liability from plant and machinery to encourage more investment.


business network May 2021 45


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