Equality gap widens: Rochdale has six times more job seeker’s allowance claimants than Cambridge

The gap between the economic performance of cities across the UK is widening, with six times more job seeker’s allowance claimants in parts of Rochdale than there are in parts of Cambridge, a new study has revealed.

Research group Centre for Cities say that the national economy is struggling to create the numbers of private sector jobs needed to drive growth, or to balance job losses in the public sector. This pattern, they say, has played out “very differently” across UK cities.

Its report, Cities Outlook 2012, showed that the gap in the claimant count rate between Hull and Cambridge had doubled to 6.1 per cent over the past four years while there are six times more job seeker’s allowance claimants in the most troubled neighbourhood in Rochdale than there are in the most troubled neighbourhood in Cambridge.

Cities with less dynamic private sectors, such as Hull, Doncaster and Newport in South Wales, will find it more challenging to offset the weak national economy and continuing cuts in the public sector, the report said.

Cities which were said to have performed well include Edinburgh, Cambridge and London, which have high numbers of skilled residents and those working in professions such as law, finance and accountancy.

The research suggested "glimmers of hope" from some cities this year, with Milton Keynes and Aberdeen identified as being well-placed to drive the national economic recovery.

Alexandra Jones, chief executive of Centre for Cities, said: "The year ahead is going to be tough for all UK cities but Cities Outlook 2012 shows that some cities are well-placed to kickstart economic growth. However, some cities have been hit particularly hard by recession and the gap between cities is widening.

"This makes it vital that Government policy is tailored to meet the needs of each city rather than one-size-fits-all. What is right for Brighton and Reading will not be right for Dundee and Middlesbrough.

"During 2012 cities should take the lead in shaping their local economies and the Government should give them the financial and political powers they need to make the right decisions for growth.

"Where cities face greater social and economic challenges, the Government should offer support to help places adapt and respond to a rapidly changing global economy."

Councillor Peter Box, Chair of the LGA’s Economy and Transport Board said: “The latest Cities Outlook report highlights the significant differences in how our cities are dealing with the tough economic climate.

“Councils strongly support the premise that Government policy must be tailored to meet the needs of each individual city, rather than a one–size-fits-all approach. It is vital that local council and business leaders, who understand their cities best, are given the tools they need to deliver growth, create jobs and start businesses.

“Councils have already started the process towards re-energising cities and communities and must now be allowed to go further. Changes to the planning system can help, but the LGA is now calling on the Government to localise the running of apprenticeship schemes and the ability to improve transport infrastructure to increase growth further.”