Prime Minister Gordon Brown should give England’s major cities new powers, according to the Core Cities Group and the Centre for Cities. In a letter to Gordon Brown to be sent on Thursday, the leaders of Birmingham, Bristol, Leeds, Liverpool, Manchester, Newcastle, Nottingham and Sheffield will urge him to give cities new powers over transport, economic development, housing and skills and the ability to raise more of their own cash.

Research from the Centre for Cities, to be published next month (9 July), shows that most English cities have turned themselves around over the past decade, boosted by higher public spending and a strong national economy. But the report will show that some cities are doing far better than others, and there are still high concentrations of poverty and worklessness within all eight Core Cities.

Dermot Finch, Director of the Centre for Cities, said:

“Our cities are the economic powerhouses of the country. But they need more powers. Over the past decade, only limited progress has been made on this. Going forward, our cities and towns need much more freedom and control over transport, housing and skills and greater powers to raise more of their own cash.”

Chris Murray, Director of the Core Cities Group, said:

“The future growth of our major cities is vital to boost national economic success and address regional disparities. Cities cannot achieve this in isolation and that is why the Core Cities are working hard to collaborate with their neighbouring towns and cities on priority issues such as transport, economic development, housing and skills. We need strong cities but also strong regions, so we also need the cooperation of regional agencies and Government to achieve this growth.”

The letter to Gordon Brown explains that over the next decade, all English cities and towns face a new set of challenges:

• Globalisation and new technology are changing urban economies at a rapid rate
• Their performance lags behind that of many of our international competitors and they need to accelerate growth
• Migration and an ageing population are changing labour markets and placing new pressures on public services
• Climate change demands changes to the way that cities run transport and construct new buildings
• Persistent inequalities are holding back many cities
• Tighter public spending means that cities will need to do more with less
• Housing supply needs to be increased urgently, to meet the needs of families, singles and older people

The letter argues that these changes present cities with new opportunities: reshaping urban economies around knowledge-based industries; tapping into new skills and new markets; developing opportunities for “green growth”; encouraging all places to reach their full potential; translating economic success into social cohesion; and working more closely with the private and third sectors.

The letter says the following changes are essential:

• The Government should prioritise the economic development of England’s major cities, as drivers of regional and sub-regional economies. This will require hard choices, but is essential to future prosperity.
• The Government should empower cities and towns to deal more flexibly with their own particular challenges on transport, housing and skills. Tailored solutions are better than national initiatives.
• Regional Development Agencies should strengthen their strategic role, but be encouraged to devolve responsibilities to sub-regional groups of towns and cities to set priorities for investment and to commission delivery.
• The Government should clarify the roles and responsibilities within regions for: strategy; delivery; and accountability and scrutiny.
• The Government should respond positively to the Lyons Report, with innovative solutions to enhance local government financing to support major infrastructure projects.

The Leaders of all eight Core Cities will be writing to the new Prime Minister on 28 June, to set out this agenda for change and make proposals for cooperative working with Government to achieve sustainable growth. This agenda will be explored in detail at the Core Cities Summit 2007 in Nottingham 7 and 8 November.

Notes to Editors

The Centre for Cities is an independent urban research unit currently based at the Institute for Public Policy Research (ippr). It is taking a fresh look at the UK’s cities and towns, with a focus on the dynamics of economic growth and change. Later this year, the Centre will spin out from ippr.

The Centre for Cities will publish “Two-Track Cities: the challenge of sustaining growth and building opportunity” in July, setting out the key economic challenges facing UK cities.

The Core Cities Group is a cross-party, cross-city alliance including Birmingham, Bristol, Leeds, Liverpool, Manchester, Newcastle, Nottingham and Sheffield. Leadership of these cities covers all three main political parties.