Core Cities Core Cities

Birmingham, , , , , Newcastle, , , What are the Core Cities? and Skills, Jobs and Investment Economic assessments of Core Cities Summary Core Cities What are the Core Cities? Core Cities are the engines of economic growth

“Cities are the engines of economic growth and countries that support all their big cities ‘equally’ perform stronger economically”

The Core Cities work in partnership to enable each to enhance their economic performance and make real advances within a highly competitive international market. The English Core Cities are all Labour-run apart from Bristol, which is run by a coalition.

The was established in 1995 and until recently consisted of the eight largest cities in outside London – however, Glasgow and Cardiff have now joined the Core Cities Group bringing the total to 10 cities.

(, Bristol, Liverpool, Leeds, Manchester, Newcastle, Nottingham, Sheffield, Cardiff and Glasgow, form ‘Core Cities UK’.)

What are the Core Cities | Skills, Jobs and Investment | Economic Assessments | Summary Core Cities What are the Core Cities? Areas of focus for Core Cities

The Core Cities focus on key areas: The amount of money cities control directly in England Key Facts: is very small compared to other countries. In England, • Transport and connectivity cities only directly control about 5% of all the taxes • Across the UK, cities take up just 9% of the land mass, raised from local people and businesses. According but account for 58% of jobs, 60% of the economy and • Innovation and business support to the OECD, compared to English figures the level of 72% of high skilled workers and it was indeed English taxes controlled at the local or regional level is about cities that gave the world the Industrial Revolution. • Skills and employment 10 times greater in Canada, 7.5 in the US, 7 in Sweden, and almost 6 in Germany. This means English cities have • In 2008 50% of the world’s population lived in a city • Sustainable communities nothing like the level of local financial control enjoyed and by 2050 it will be 70%. by cities abroad and are not competing on a level • Culture and creative industries playing field. • By 2030 – before HS2 is completed– the Core Cities urban areas could put 1.16million more jobs and £222 • Climate change Each city is different and each has its own billion into the economy. economic strengths • Finance and industry • The eight Core Cities (England) urban areas deliver Empowering cities to make the most of their strengths 27% of England’s wealth and a third of the country’s • Governance is vital for a thriving UK economy. Mounting evidence population live in the eight Core Cities. suggests that if our cities had greater fiscal control, they could help make their economies more competitive. • Core Cities are aiming to deliver more and better jobs.

What are the Core Cities | Skills, Jobs and Investment | Economic Assessments | Summary Core Cities What are the Core Cities? Workforce Skills in Core Cities

Workforce Skills

The Core Cities have a strong pool of highly skilled workers and compare well with their European rivals on the number of graduates they can draw from, however when compared to Germany and France our cities are not nearly as innovative as they could be. More must be done to encourage businesses to innovate, so that our cities can be global players in the ‘knowledge industries’ of the future.

Cities will not grow unless people choose to live or work there because they can access more opportunities or a better quality of life. In order to drive faster progress to an innovative knowledge-based economy and to enhance the UK’s global competitiveness, improving the UK’s skills at all levels is critical.

Low skills and high levels of people without work still represent the single biggest barrier to increased productivity in the Core City Regions. The Core City Regions are home to 32% of England’s labour force.

In the Core Cities themselves, a significantly higher proportion of residents (18.7%) have no qualifications compared to England as a whole (14.1%).

Core City and city region efforts to enhance workforce skills start with boosting educational attainment at secondary school. While there have been significant improvements in recent years, attainments are still lower than in many competing European city regions.

What are the Core Cities | Skills, Jobs and Investment | Economic Assessments | Summary Core Cities What are the Core Cities? Glasgow and Cardiff join Core Cities Group

Glasgow

Glasgow accounts for 35% of Scottish Jobs, and 40% of the jobs in some of the key sectors -Finance, Aerospace, Defence and Marine and represents 36% of GVA. Glasgow has more in common with cities like Liverpool and Manchester than it does with many parts of and shares the attributes and criteria associated with other Core Cities.

The Core Cities led the first wave of City Deals and Glasgow was the first non-English city to announce a City Deal with the UK Government (August 2014). Glasgow’s urban area delivers 33 per cent of the Scottish economy and is home to 1.8 million people.

Cardiff

Cardiff officially joined the Core Cities Group (September 2014). Over the last 10 years Cardiff has seen the highest growth in private sector employment of all the major UK cities except London. Over the next 10 years, Cardiff is projected to be the UK’s fastest growing city. Cardiff is one of the UK’s most highly skilled cities.

What are the Core Cities | Skills, Jobs and Investment | Economic Assessments | Summary Core Cities Skills Jobs and Investment

To remain competitive cities must be increasingly quick in responding to changing market dynamics

To reach growth targets in the next 20 years, Core Cities have to find more investment and more people with the right skills. They need better support for local businesses, improved transport, more and better housing, faster broadband, and to meet rising energy demands.

Core Cities will need about 259,000 graduates and 443,000 people with NVQ Levels 1–3 beyond what is currently predicted.

Each city has its own economic strengths, and therefore different skill needs for its workforce.

Each of the Core Cities sit amid their own economic context, providing local employment in a wide range of key industries, and each with its own unique set of demands, challenges and opportunities.

What are the Core Cities | Skills, Jobs and Investment | Economic Assessments | Summary Core Cities Skills Jobs and Investment What is the knowledge economy?

“The knowledge based economy” is an expression coined to describe trends in advanced economies towards greater dependence on knowledge, information and high skill levels, and the increasing need for ready access to all of these by the business and public sectors.”

Particular Strengths of Core Cities: Engineering Manchester, Birmingham and Sheffield come out strongest in this analysis, which is Social sciences not unsurprising given each city’s industrial heritage. Manchester, Bristol and Nottingham are very active in social sciences. Geosciences Business and economics Liverpool, Manchester and Bristol field the strongest in this area of research. Bristol, Nottingham and Birmingham show the highest impact for their research in the area of business and economics research. Clinical sciences Birmingham, Bristol and Newcastle exhibit the greatest amounts of impact of their Information technology research. In Birmingham, metabolic diseases (e.g. diabetes) and gastroenterology Manchester, Liverpool and Birmingham edge ahead in this area of research activity. clinical research are strong.

Environmental sciences Chemistry Sheffield, Birmingham and Bristol feature strongly in this category. Sheffield, Bristol and Liverpool are the highest rated in this analysis.

What are the Core Cities | Skills, Jobs and Investment | Economic Assessments | Summary Core Cities Skills Jobs and Investment

Leading research activity impact for each core city

City 1st 2nd 3rd

Sheffield Chemistry Maths and physics Life sciences

Newcastle Clinical sciences Life sciences IT

Leeds Clinical sciences IT Business & economics

Manchester Social sciences IT Engineering

Liverpool Geo – sciences Maths and physics Chemistry

Birmingham Clinical sciences Maths and physics Life sciences

Bristol Business & economics Life sciences Social sciences

Nottingham Business & economics Social sciences Chemistry

What are the Core Cities | Skills, Jobs and Investment | Economic Assessments | Summary Core Cities Skills Jobs and Investment

Key Knowledge Economy Employers situated in Core Cities

Birmingham Jaguar Land Rover, BMW, GKN, Fujitsu, Aero Engine Manchester Jacobs Engineering, Cisco, Fujitsu, Hyde Group, Renold, Controls, Rexel, CSC Computers, Oracle, AECOM, Siemens, Waters Corporation, BASF, Electrium, Hewlett Packard, Elonex and Monarch Landis & Gyr, PZ Cussons, Tetrosyl, BBC, ITV, ENER-G, UKFast and Satellite Information Systems Bristol Hewlett Packard, Airbus UK, GKN Aerospace, Rolls Royce, BAE, GE Oil & Gas, ST Microelectronics, BBC Newcastle Sage Group, Hewlett Packard, Scott Logic, Ubisoft Reflections, Bristol, MBDA Missiles and New Earth Solutions Nissan, Akzo Nobel, AMEC, BAE, GE Oil & Gas, Duco, Sanofi Aventis, A&P Tyne, Voler Stevin, Offshore Group, INEX and British Leeds BT, ITV, Plusnet, AE Turbine Components, Cameron, Engines Schneider Electric, IBM, Kodak,Optare, Scientific Games, Agfa graphics and IC Blue Nottingham Boots, Siemens, Romax Technology, Blackburn Starling, Promethean Particles, Confetti media, Broadway and Antenna Liverpool Unilver, Jaguar Land Rover, Diligence, Cammell Laird, Eli Lilly and Company, RedX, Medimmune UK, Nutrica, Sheffield Boeing, Rolls Royce, Tata, Plusnet, Tribal Technology, Clarke Energy and Eden Bio Design Forgemasters, Firth Rixon, Swann Morton and Siemens

What are the Core Cities | Skills, Jobs and Investment | Economic Assessments | Summary Core Cities Economic Assessments of Core Cities

Birmingham

Birmingham’s economic growth over the next 5 years is expected to be 10.8%, slightly weaker than the UK average of 11.7%. Birmingham’s knowledge economy is supported by three universities and over 60,000 students. The average number of net start-ups per 100,000 of population for 2004-2012 is 3.58, which is considerably lower than the UK average of 42.9 and the Core Cities average of 21.4.

Bristol

Bristol has the highest number of net business start ups per 100,000 population for the Core Cities, and Bristol is one of the strongest Core Cities in terms of innovation. The core knowledge and creative sector amounts to 6.3% of Bristol’s total economy, which is below the UK average of 8.7%. Over the next 5 years this sector’s growth rate is expected to be 11.2%.

What are the Core Cities | Skills, Jobs and Investment | Economic Assessments | Summary Core Cities Economic Assessments of Core Cities

Leeds Manchester

Leeds is expected over the next 5 years to achieve output growth of 12.2%, Manchester is the only city to have the highest research impact of all the Core Cities slightly higher than the UK average of 11.7%.; although one of the UK’s in three different sectors, those being social sciences, IT and engineering. Manchester largest city regions, only 10% of Leeds firms export outside of the UK. The city’s output growth over the next 5 years is expected to be 12.3%, slightly higher than core knowledge and creative sector amounts to 7.6% of the Leeds economy, the UK average. slightly below the UK average of 8.7%. Newcastle Liverpool Newcastle is expected over the next 5 years to achieve output growth of 9.2%, slightly Liverpool is expected over the next 5 years to increase GVA output by 7.9%, below the UK average of 11.7%. Newcastle’s output growth is expected, by Experian, but this is below the UK average of 11.7%. Liverpool has the highest number to be 9.2% over the next 5 years, slightly below the UK average of 11.7%. Of all the of interactions between SMEs and universities, with almost 30,000 since Core Cities, Newcastle has the largest number of employees within the knowledge 2008. Liverpool has the largest concentration of pharmaceutical industry in economy at 6.8% (average 5.4%). Most of these are in TMT (5.1%), which is the largest Europe and is investing heavily in growing the sector further. alongside Manchester, with computing and information systems accounting for 3.5% of employees.

What are the Core Cities | Skills, Jobs and Investment | Economic Assessments | Summary Core Cities Economic Assessments of Core Cities

Nottingham

Expected economic growth in Nottingham of 11.3% over the next 5 years is almost identical to the expected UK average of 11.7%. The Nottingham economy has gradually changed from traditional industry to knowledge economy and overall Nottingham ranks second for business and economics and third for social sciences out of all the Core Cities.

Sheffield

Economic growth in Sheffield over the next 5 years is forecast to be 8.8%, below the UK average of 11.7%. Sheffield has the lowest number of net start-ups of all the Core Cities, with an average of - 10.1 per 100,000 population between 2004-2012, compared to 21.3 per 100,000 for the Core Cities and 42.9 for the UK. Sheffield has the highest impact of any Core City for environmental sciences and chemistry, whilst it is second for engineering and third for maths and physics, reflecting the work done by the universities to support the advanced manufacturing and energy sectors in the city.

What are the Core Cities | Skills, Jobs and Investment | Economic Assessments | Summary Core Cities Economic Assessments of Core Cities Key Employment Locations of Core Cities

Birmingham Eastside, Digbeth and Jewellery Quarter, Longbridge Technology Park, Birmingham Science Park and Birmingham Research Centre

Bristol Temple Quarter Enterprise Zone, Filton, Bristol and Bath Science Park

Leeds Holbeck Urban Village, Airedale digital cluster, Leeds Innovation Centre and Bioincubator

Liverpool Liverpool Innovation Park, Liverpool Science Park, BioCampus and Liverpool Knowledge Quarter, Heath Business and Technical Park, Sci-Tech Daresbury, Liverpool and Wirral Waters Enterprise Zone

Manchester Manchester Science Park, Corridor Manchester, Airport City Enterprise Zone and Media City

Newcastle Newcastle Accelerated Development Zone, Science Central, Stephenson Quarter, Gateshead Quays and Baltic Business Centre

Nottingham BioCity, Lace Market and Hockley

Sheffield Don Valley, Advanced Manufacturing Park including the Nuclear Research Centre and Advanced Manufacturing Research Centre, Sheaf Valley, Devonshire Quarter and Sheffield Digital Campus

What are the Core Cities | Skills, Jobs and Investment | Economic Assessments | Summary Core Cities Economic Assessments of Core Cities

Population of Each Core City 2012 Universities of Core Cities (students) Bristol Bristol (19,220), University West of England (30,390), Bath (15,153), Bath Spa (8,550) Birmingham 1,085,417 (1) Birmingham Aston University (10,200), Birmingham City University (23,440), University of Bristol 432,451 (6) Birmingham (31,070)

Leeds 757,655 (3) Leeds Leeds Metropolitan University (27,985), University of Leeds (32,510), Leeds Trinity and All Saints (3,320) Liverpool 469,690 (5) Liverpool Liverpool University (21,875), Liverpool John Moores (24,455), Liverpool Hope Manchester 976,323 (2) University (7,770)

Manchester University of Manchester (40,680), University of Salford (21,755), Manchester Newcastle 282,442 (8) Metropolitan University (34,595)

Nottingham 308,735 (7) Newcastle Newcastle university (21,055), Northumbria University (29,300)

Sheffield 557,382 (4) Nottingham Nottingham Trent (27,930), University of Nottingham (35,630)

Sheffield University of Sheffield (25,965), Sheffield Hallam (37,160)

What are the Core Cities | Skills, Jobs and Investment | Economic Assessments | Summary Core Cities Summary

Core Cities point to International Counterparts

The Core Cities - Birmingham, Bristol, Leeds, Liverpool, Manchester, Newcastle, Nottingham and Sheffield, as well as Cardiff and Glasgow, - point to international counterparts (Paris, Berlin and Barcelona, for example) who, they say, have enjoyed huge amounts of economic success due to having the policy and tax freedoms to boost their local economies.

Greater freedoms to decide how to spend the money generated in cities, such as property taxes, would help the Core Cities meet their target of outperforming the national economy, and becoming financially self-sustaining. Independent forecasts demonstrate this could mean an additional £222 billion and 1.3 million jobs for the country by 2030, which is like adding the entire economy of Denmark to the UK.

Devolution and Targets of Core Cities

Devolution is now the most important constitutional political issue facing Parliament, but to achieve the above targets the Core Cities would need the following:

• Approximately 259,000 more graduates and 443,000 people with NVQ Level 1-3 than currently predicted

• Transport infrastructure capable of supporting 250,000 more commuters and 51,000 extra business journeys a day

• Around £104 billion capital investment

What are the Core Cities | Skills, Jobs and Investment | Economic Assessments | Summary Core Cities Summary

Devolution will result in the greatest benefits in terms of jobs

The overall objective of Core Cities is to locally integrate approaches to skills promotion and services, Leaders of the and to deliver employment services so that they are tailored to the distinctive economic and social UK’s Core Cities conditions of each Core City labour market area. vow to drive forward devolution to achieve The vast majority of skills and employment activity and interactions take place within local labour greater freedoms for jobs and markets. Most people study in local schools and colleges. Most businesses recruit local people. Most growth people travel to work, education or training in their local labour market area. Most people move jobs within local labour market areas. The mayors and leaders of the UK’s most successful Core Cities met (20th November However, many businesses struggle to locate the skills they need - despite persistent unemployment 2014) in London’s City Hall to mark the success and growing numbers of people of all ages looking for work, 17% of job vacancies are due to skills of their City Centred Campaign and vowed shortages. to keep pushing the Government for more devolved powers. Growth Deals have been Students, parents and adult learners struggle to understand opportunities for employment in their local signed across the Core Cities and a ‘devolution area but it is cities and their leaders who understand their region that drive growth and jobs for their deal’ has been agreed for Greater Manchester cities. which will have an elected Mayor in 2017.

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