Does ‘trickle out’ work? How cities help their surrounding towns

Crëwyd Gan:  Tom Mace
Diweddarwyd ddiwethaf: 05 Medi 2023
Research

Centre for Cities have published a report that looks into the performance of major UK cities outside of London and to what extent their performance is allowing for prosperity to be extend to neighbouring towns and villages. 

A big problem for the UK economy is the underperformance of its largest cities outside London, which in 2018 alone meant that the UK economy was £48 billion, smaller than it would have been had these cities performed in line with their European peers. It is for this reason that improving the performance of these places has become central to UK economic policy.

A critique of this approach, which has been adopted by both main parties, is that in order to bring prosperity to surrounding towns it relies on this prosperity to ‘trickle out’ to them, with opponents claiming this does not work. This piece shows the opposite – big cities do bring benefit to their surrounding areas, and their on-going underperformance reduces the extent to which they are able to do this.

Category: Demographics & Labour Markets Economics Education & Skills Housing Policy Transport