Cities, Growth and Poverty

JRF-logoWhat is the connection between growth and poverty in UK cities? Cities are increasingly seen as the drivers of the national economy, and the UK Government is devolving new powers to the largest and fastest-growing urban areas. Cities also tend to have concentrations of poverty. 

An evidence review examines how strategies for economic growth and poverty reduction can be aligned.

Summary findings

  • There is no guarantee that economic growth will reduce poverty – in some economically expanding cities poverty has stayed the same or increased;
  • employment growth has the greatest impact on poverty, but if jobs are low-paid or go to workers living outside the area, the impact is minimal;
  • increased output risks worsening poverty because it can lead to increases in the cost of living;
  • some cities are tackling this by promoting employment in expanding sectors or providing training for disadvantaged groups so they can access opportunities associated with major infrastructure projects.

The full report can be opened here.