The Local Government Association (LGA) has warned that English cities are failing to keep pace with their counterparts in the EU and the US because of Whitehall’s local stranglehold.

In order to keep pace with other urban centres around the world, English cities need to become more productive and competitive, according to a new report entitled Prosperous Communities II.

London is the only English city in the list of Europe’s most prosperous urban centres, the LGA report reveals, while regional competitiveness in other regions around the country is in decline.

“British productivity is below the average of G7 countries, lagging behind the US, France and Germany,” commented Sandy Bruce-Lockhart, chairman of the LGA. “England’s regional centres underperform their continental peers.

“Most of our great cities, a century ago the economic powerhouses of the industrialised world, now languish at the bottom of the table.”

The LGA has outlined 34 key areas where governmental control should be devolved in order to breed a more competitive and productive environment. Housing, planning, transport, benefits, skills and labour market powers are but some of recommended fields.

By taking these steps, output by worker could rise by as much as ten per cent in six English regions, the equivalent of over £2,500 per worker, per year in the north-east. This is the equivalent of an extra £2.5 billion extra output nationwide each year, according to calculations.

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