◆ Scott Reid looks at why the Scottish capital has become the top city outside of London over the past decade
Edinburgh has emerged as the best performing city outside of London over the past decade, leading to some of the most expensive house prices and office rentals in the
UK.
The Scottish capital stood out for high levels of productivity, income, employment and health. It was ranked first for gross household disposable income per head of population (£24,161 in 2021) and had the highest percentage of its citizens in good or very good health (86 per cent).
The Local Heroes report by OCO Global examined 37 data points covering economic, prosperity, wellbeing, property and educational trends over the past decade. The cities were ranked as “top tier” (Edinburgh), “booming” (Belfast, Manchester and Bristol), “solid performers” (Cardiff, Liverpool, Leeds and Newcastle) and “moderates” (Birmingham, Sheffield and Nottingham).
The top performing cities for each sector were Edinburgh (economy, wellbeing and prosperity) and Bristol (education and prosperity). The lowest ranked were Sheffield (economy and education), Newcastle and Nottingham (prosperity) and Birmingham (wellbeing). The study also found that while economic performance was improving across the 11citiesexamined,unequaldistribution of funding from Westminster and a lack of city-level control over how funding is being spent is exacerbating rather than redressing regional inequalities.
The findings point to a wide disparity in the amount of money each city received from “levelling up”, city deals and shared prosperity funds. Of the £6 billion or so allocated from these sources, cities classed as “boomers” received on average £748 per head compared to £420 for solid performers and just £133 for moderates. Edinburgh received £616 per head, due primarily to less money being provided through the levelling-up fund.
The report concluded that although there was no one model for successful city growth, the best performing cities were those which combined high levels of funding with “effective” devolved powers. Mark O’connell, executive chairman of OCO Global, said: “Levelling-up policies are meant to redress decades of structural imbalance between UK regions, but the study suggests that the way funding is allocated is actually helping exacerbate those inequalities. Funding tends to go to cities which are best at applying for it rather than those with the most need. It gives a further advantage to already booming cities which can demonstrate they are successful at spending funds.
“This centralised funding system isn’t giving enough consideration to unique local challenges, or the different areas different cities excel in. If we really want
Edinburgh emerged as the top performing city in the economy, wellbeing and prosperity categories, beating off 10 other cities across the UK connectivity and wellbeing, enhance skills and inclusiveness in the workplace, and promote themselves as investor-friendly can succeed.
“All of the cities in the report grew, but they excelled in different areas. Consequently, there is no one-size-fits-allstrategy to deliver growth. Rather than wait for Westminster to provide a lead, city authorities need to identify their own regional strengths and weaknesses, ensure that elected mayors have more discretion to allocate money locally and develop bespoke growth strategies.”
While Edinburgh stood out for its high levels of productivity, income, employment and health, this helped consolidate the city’s attraction as a desirable location, OCO Global noted, leading to some of the most expensive
Scotland’s housing system is at a critical juncture. The Scottish Government has acknowledged the nation’s housing emergency and announced its intention to recognise housing as a national outcome. This is a vital first step, but the real challenge is translating this intention into effective action. As Managing Director of Cruden Homes, I’m acutely aware of the many, complex issues facing house builders today, particularly under the constraints of current planning regulations such as the National Planning Framework 4 (NPF4).
Recently, we hosted Housing Minister, Paul Mclennan at our Longniddry Village development, a fantastic example of sympathetically extending this
East Lothian village with affordable and private new homes. This multi-awardwinning development really captures the vision for community-oriented housing. Yet despite being acknowledged as “one of the best examples of new housing ever seen”, Longniddry Village is the antithesis of what NPF4 calls for – which is primarily urban and brownfield regeneration. There is a massive disconnect between planning policy and the homes that people want, aspire and need to live in.
At the heart the problem is the severe shortage of suitable developable land. This scarcity is compounded by recent legal rulings, such as the Court of Session’s decision on the Miller Homes appeal in Mossend in West Calder. The court upheld the Scottish Ministers’ refusal to permit a 250-home development, citing incompatibility with a policy within NPF4,