125 businesses based in Sunderland are taking part in a major new research project for the Centre for Cities. City Markets will examine why businesses locate and invest in deprived urban areas. Using the information from Sunderland's businesses, it will assess the impact of government policies on enterprise, transport, skills and planning.

125 business surveys are currently underway in Sunderland's 16 Enterprise Areas, including Southwick, Thorney Close and Pallion. Similar surveys are being carried out in Doncaster and Derby. Preliminary findings will be out in September, with the final report published by May 2006. It will aim to influence the future shape of the government's Local Enterprise Growth Initiative (LEGI) – which will fund £300 million of economic development in deprived areas, over 2006-09.

Dermot Finch, Director, Centre for Cities, said:

“Our City Markets project is talking directly to Sunderland's businesses. We want them to tell us about their priorities and concerns. We will use the findings to recommend changes in government policy on enterprise, transport, skills and planning and to help Sunderland and other cities build on their success.”

Paul McEldon, Chief Executive of North East BIC, said:

“In order for a city to be successful, it must be an attractive place to live and work. This Centre for Cities project aims to boost Sunderland's performance by working with key partners to provide a focus for regeneration and prosperity within the area.”

The Centre for Cities is working closely with Sunderland City Council, Sunderland arc, North East Chamber of Commerce, One North East, and North East Business and Innovation Centre.

Sunderland is transforming its economy. Like many other Northern cities, it has suffered badly from the effects of de-industrialisation. But the city is now home to a host of world-class companies, including Nissan, Rolls-Royce, Barclays and Nike. There are some other exciting new developments:

• Sunderland is embarked on a £1 billion regeneration programme that will utilise the city's superb natural assets;
• North East Business and Innovation Centre is helping hundreds of residents into self-employment, providing business premises and advice; and
• Sunderland arc is driving forward the revival of Wearside.

Notes to Editors:

City Markets is looking at the changing business profile in deprived areas of small cities and large towns, and why certain businesses choose to locate there. It is also examining the Government's record of promoting enterprise in deprived areas – looking in particular at the Phoenix Fund, Business Link, Enterprise Areas, CDFIs (Community Development Finance Institutions) and CITR (Community Investment Tax Relief).

Enterprise Areas are the 1,997 most deprived wards in the UK. In England, 73 per cent of Enterprise Areas lie within the 88 local authorities which receive support from the Neighbourhood Renewal Fund.

The City Markets business survey is asking questions such as:

• What is the biggest advantage and disadvantage of your local area?
• What is the impact of crime, transport and planning on your business?
• How effective is business support in your area?
• How difficult is it for you to comply with tax obligations?
• How effective are Enterprise Areas and their associated measures?

For details of the businesses surveyed, please contact Emma Sherlock.

The Centre for Cities is an independent urban policy research unit, based at the Institute for Public Policy Research (ippr). Launched in March 2005, it is taking a fresh look at how UK cities function. It is funded by Lord Sainsbury of Turville.