Published on behalf of the Fast Growth Cities group.
- Council leaders of the Fast Growth Cities group – comprised of Cambridge, Milton Keynes, Norwich, Oxford, Peterborough, and Swindon – have today written to the Government urging action to be taken to unlock £21bn of growth for the UK economy over the next decade.
- A new economic report highlights that these cities – which already sit above the UK average when it comes to economic and employment growth – could have an outsized impact on UK GVA if the right conditions are put in place.
- But, with each city sitting within a ‘seriously water stressed’ area, transport connectivity lacking, and housing affordability and supply low, leaders of the FGCs highlight that this potential growth is being inhibited and action needs to be taken ahead of the Spring Statement.
Council leaders from the six Fast Growth Cities have written to Government urging action to be taken to provide a £21 billion boost for UK GVA over the next decade.
As revealed in a new economic report, the six cities are among the UK’s most productive and fast-growing economies outside London and already play a critical role in supporting national productivity, innovation, inward investment and long-term fiscal returns. The report reveals that the cities have grown at a rate of 2% per year over the last decade, above the UK average of 1.7%, while the group has attracted around 10% of total UK venture capital investment despite accounting for less than 2% of the UK population. Combined, they also produce £34bn of global exports, accounting for 4% of the UK total.
Scenario modelling contained within the report indicates that, with sustained productivity growth and a return to pre-pandemic employment trends, the Fast Growth Cities could generate £21bn in additional real GVA by 2035 and £78bn by 2050 for the UK economy.
Maintaining all these benefits and realising this opportunity, however, is reliant on high levels of employment growth. As made clear in the letter sent in by the six council leaders, this growth is currently at serious risk due to a number of factors:
- Water and electricity are emerging as binding constraints to regional growth. All FGCs sit within areas classified as ‘seriously water stressed’ by the Environment Agency, meaning existing supply is already under pressure before accounting for the additional demands that will come with growth in the region.
- Without improved connectivity by both rail and road, the FGC’s labour markets will remain constrained, housing supply will not be able to expand at pace, and productivity gains will become increasingly localised. This means prioritising inter-city and regional connectivity, while upgrading strategic road corridors.
- Housing delivery is increasingly constrained by affordability pressures, infrastructure capacity and planning complexity. Without additional support, these constraints risk slowing housing delivery, tightening labour markets and reinforcing deprivation and inequality.
As the Chancellor prepares to deliver her Spring Statement on 3rd March, the six Council leaders have therefore written to HMT urging the right investment conditions to be put in place to catapult not just the growth of each city, but that of the UK.
City by city:
- Between 2011 and 2022, the University of Oxford generated 225 spin‑out companies, the highest number of any UK university, while around 57% of its population have degree level qualifications (vs. a UK average of 42.7%).
- Cambridge attracts a notable 1.6% share of the UK’s net FDI earnings, underscoring its global appeal to investors, while it has had over 6,000 patent applications and 33,000 scientific publications per million people, second only to Silicon Valley in World Intellectual Property Organisation’s ranking for innovation intensity.
- With over 189,000 jobs, Milton Keynes is in the top 8% of local authorities for total employment.
- A large share of Norwich’s population (63%) is of working age, strengthening its labour force base, providing a strong base to fuel future growth.
- Peterborough ranks among the top 30 areas in the UK for access to high-speed internet and its housing is the most affordable across FGC areas.
- Swindon boasts the 9th highest GVA output per filled job, making it one of the most productive places in the country.
Comment
Cllr Susan Brown, Chair of Fast Growth Cities and Leader of Oxford City Council, said: “This report highlights that our six Fast Growth Cities are among the most productive and rapidly growing contributors to the UK economy, with the potential to add £78 billion by 2050. To ensure the continued growth of our cities, it is essential to create the right conditions and provide the necessary support. This includes investing in rail and road connectivity, housing supply, particularly affordable housing, and local infrastructure. We are encouraging the government to recognise our cities' valuable contribution in their upcoming Spring budget.”
Bertie Wnek, Director of Housing and Infrastructure at Public First, said: “This research shows the growing economic cost of water scarcity. If the Government is serious about delivering housing, attracting investment and driving growth, it has to reform the regulatory and planning processes to make it faster and cheaper to build water infrastructure to support development in the UK's most productive areas.”
Cllr Cameron Holloway, Leader of Cambridge City Council, said: “I'm proud that Cambridge is a world-leading centre for life-changing research, technology and medical advances. However, our potential to contribute further to national prosperity and wellbeing is constrained by the results of historic underinvestment in water supply, wastewater and sustainable transport infrastructure, and by very poor housing affordability. To maximise our contribution to national economic growth and to make it more affordable to live in and around Cambridge, we need significant and sustained investment and legislative change from government to allow desperately needed new infrastructure to be rapidly built out."
Cllr Lauren Townsend, Deputy Leader of Milton Keynes City Council, said: “Milton Keynes is proud to be one of the Fast Growth Cities, and this report makes clear what we’ve long known: with the right investment and infrastructure, our city can play an even bigger role in driving the UK’s economic success. We’re a hub for innovation, talent and high‑growth businesses, but continued progress relies on unlocking the transport links, housing delivery and utilities capacity that our communities and employers urgently need.”
Cllr Mike Stonard, Leader of Norwich City Council, said: “We are an ambitious council determined to build on Norwich’s burgeoning reputation as a place to invest and make it one of England’s economic powerhouses. We are enormously grateful for the support from the Government in helping us deliver on our plans to build more homes in the city and regenerate Anglia Square but it’s crucial we maintain this momentum and get a high speed rail link to not only from London but other major cities such as Birmingham, Manchester and Leeds.”
Cllr Shabina Qayyum, Leader of Peterborough City Council, said: “Peterborough is a city on the move and committed to the growth agenda. Over the past 10 years we have been the 5th fastest growing city by population, have the 3rd highest jobs creation rate, and we're in the top third of cities for productivity. We are a city that has incredible potential to contribute further to UK Plc, but this has to be good growth that benefits all of our residents. The investment and policy asks highlighted in this report will enable us, and our fellow Fast Growth Cities, to unlock that raw potential and deliver benefits that will be felt far beyond our city boundaries."
Cllr Jim Robbins, Leader of Swindon Borough Council, said: “Swindon is one of the fastest growing and most productive places in the country, with a strong private sector and a proven track record in attracting investment. But we know that with continued strong backing from government, we can maximise our potential even further, really deliver for UK PLC alongside our Thames Valley Partners and get back to being the fastest growing town in Europe. We’re a leading pro-growth town and we’re ready to move quickly by accelerating housing delivery, renewing our industrial base in areas like advanced manufacturing and defence, and investing in the infrastructure that growth depends on. We’re also facilitating the investment of tens of millions of pounds in our town centre to improve Swindon for our residents, while driving regeneration and helping our creative, tech and business sectors to thrive. We're determined to build a better Swindon and put the town back on the map.”
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