Investment in cities ‘best way’ to tackle regional inequality

New research from the CAGE Research Centre has argued that it is investment in cities, not towns, is the best way to tackle regional inequality for the long-term.

Studying the impact of the pandemic on the UK's regional structure, the research found that the pandemic has done little to change the economic geography of the UK. London is still by far the most dominant force in the UK economy. However, the desire for urban living revealed in the data, and the increasing squeeze on Londoners’ disposable incomes, reveals an opportunity to tackle regional inequality.

CAGE argues that the desire for urban living, as well as the increasing squeeze on Londoners’ disposable incomes, emphasises an opportunity to tackle regional inequality. In order to do so, the paper recommends that the government invest in cities outside of the capital.

Mirko Draca, director of CAGE and co-author of the research, said: “Though London remains the main attraction, our data shows that across the UK, people like living in cities. If the government is serious about challenging the economic power of London and boosting the regions, it needs to put cities at the centre of its agenda.”