Think-tank calls for devolution of housing and planning powers

The report, named Cities Outlook 2015 (60-page / 2.3 MB PDF), found that the divide between the performance of cities in the south of England and those elsewhere in the country had widened between 2004 and 2013. It found that cities in the south had experienced higher population growth, business growth and particularly growth in the number of jobs than those elsewhere.

The report noted that the dominance of London and the south of England had increased despite "a number of attempts to push power down from Whitehall to town halls across the country". It said that the establishment of the Greater London Authority and the transfer of powers to the mayor of London had "allowed London to better plan for growth, direct investment where it can generate the biggest economic returns ... allowed the mayor to exert significant influence over how the government invests its budgets".

The think-tank said it was "encouraging" that Greater Manchester was "set to receive similar powers to those afforded to London" as a result of a devolution deal agreed in November. It called for "similar deals to be brokered with other UK city-regions" to give them "the necessary powers over transport, housing, planning and skills to drive their economies forward".

“Cities drive economic growth and provide jobs and homes for tens of millions," said shadow infrastructure minister Lord Andrew Adonis in the report. "Centre for Cities’ Cities Outlook 2015 argues convincingly that devolution of power and resources from Westminster and Whitehall to city regions across the country is vital to creating a sustainable and strong economic recovery nationwide."

"The north/south divide provides a continuing challenge to central government to ensure that the proceeds of growth benefit every region," said Lord Adonis. "Cities Outlook 2015 makes an important contribution to the debate on how to best enable city regions to fulfil their economic potential. It comes at a moment of political opportunity for radical devolution, and I hope this moment will be seized across the political divide."