‘Broad brush’ approach to ‘levelling up’ will not work, study warns

The government must think local when it comes to ‘levelling up’ and the post-pandemic economic recovery, according to a new report.

The Good Growth for Cities report by PwC and think tank Demos argues that while the cities and towns hardest hit by the economic fallout from the pandemic are likely to make the fastest recovery, they are still expected to be worse off than at the beginning of the pandemic compared to other places.

According to the report, cities and towns hardest hit during the pandemic, such as Bradford, Liverpool and Southend have seen their economies decrease by more than 12.5% in 2020, yet are among those with the strongest projected growth rates for 2021.

These cities are predicted to recover faster than others in 2021, with growth rates of 5.3% and higher.

However, it warns a return to pre-pandemic conditions will not necessarily instigate a dramatic upturn in economic activity and these city economies will still be smaller in 2021 than they were in 2019.

The report highlights the deep-seated challenges facing many of the worst hit towns and cities which in many cases are those traditionally vulnerable to volatile economic performance.

And it calls for a doubling-down on efforts to address structural issues – such as improving local skills, encouraging new business development and addressing local environmental challenges.

‘A broad brush approach to levelling-up will not address the challenges facing the places that have been hardest hit,’ said PwC’s regional lead for government and health industries, Karen Finlayson.

‘We need a precise approach which takes into account the strengths and needs of individual towns and cities to build more resilience and drive a fair recovery across the UK. Given continued uncertainties, particularly with the post EU trading environment and unknowns around pandemic recovery, action is required so that levelling up is a reality not an unattainable aspiration.’