Cities, Growth and Poverty: A review of the evidence

This report explores the connection between growth and poverty in UK cities, and examines how strategies for economic growth and poverty reduction can be aligned.

The report finds that:

• there is no guarantee that economic growth will reduce poverty: some economically expanding cities experienced unchanged or increasing poverty rates;
• employment growth has the greatest impact on poverty, but it is contextdependent: if jobs are low-paid or go to workers living outside the area, the impact on poverty is minimal;
• increased output risks worsening poverty because it can lead to increases in the cost of living;
• some cities are tackling this challenge by promoting employment in expanding sectors or providing training targeted at disadvantaged groups to enable them to access opportunities associated with major infrastructure projects.

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CONTENTS

Executive summary
1. Introduction
Why cities matter for growth and poverty
About the report
Methodology
2. Background and framework for analysis
A framework for linking cities, growth and poverty
The drivers of growth
Types of economic growth
People and places – factors linking growth and poverty
Benefits and the cost of living
Types of poverty
Conclusions
3. Cities and economic growth
The economic advantages of cities
UK cities compared with their international counterparts
The drivers of economic growth
Conclusions
4. The link between growth and poverty in cities
Trends in growth and poverty in the UK
Economic growth in British cities, 2001–10
The drivers of economic growth in British cities
The geography of poverty in the 2000s
The relationship between growth and poverty
Economic growth, wages and costs
Conclusions
5. Experience and policies to promote economic growth and poverty alleviation at city level
Introduction
Economic growth and poverty alleviation: strategies, activities and policy levers
Types of economic growth: output (GVA) and/or employment
Factors linking growth and poverty
Examples of local policy approaches and reflections on what works
Policy levers addressing growth and poverty at a local level
Assessment
6. Conclusions and implications for policy
General conclusions and implications
The drivers of growth in UK cities
The relationship between growth and poverty at city level
Local levers for linking growth and poverty reduction
Are the objectives of growth and poverty reduction compatible?
Recommendations for different cities
Notes
References
Annex 1: Case study cities – policy matrix
Acknowledgements
About the authors

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