Latest news with #economicprosperity
Telegraph
7 days ago
- Business
- Telegraph
The Northern city bucking broken Britain's brain drain
'Levelling up' has been part of the political parlance since the Conservatives' 2019 manifesto, spawning an eponymous government department which promised economic prosperity would finally spread further afield than London and the South East, across otherwise flagging parts of the UK. Yet that goal – along with the department's name – appears to have fallen by the wayside, if today's graduates are anything to go by. Six in 10 top academic achievers from outside London leave their hometown by the age of 32, according to figures from the Institute for Fiscal Studies (IFS). The research also highlighted that graduates born in 1997 are 8pc more likely to relocate for work than those born in 1986. Just over a quarter of young workers with the top 5pc of GCSE scores reside in London, despite only half of that number having grown up there. Such movement of the country's most academically gifted workers exacerbates regional division, the report found. Many ambitious young workers find they have little choice but to move to London in order to secure the career they want. This was the case for Kirstie-Anne Woodman, who moved to the capital after graduating with a degree in international relations and politics aged 22. 'I knew that if I wanted to maximise my income and do well in the future, that I needed to come down to London to get a good career, because London is the corporate hotspot,' Woodman, now 26, says. Trying to flourish as a corporate communications consultant in her hometown of Milton Keynes was not an option, she explains – for her, or the vast majority of her cohort from the University of Birmingham. 'By going to a top university you are typically a high-flyer, [and] somewhat ambitious – just by virtue of having gone to that institution,' Woodman says of her reasoning for the move. 'Quite literally all of my friends are here now.' The motivations are simple, with career progression and money chief among them. 'I know that were I still living in Milton Keynes, I would earn significantly less than I do now,' Woodman adds. Xiaowei Xu, who authored the IFS report, says that as this trend spreads, it 'massively reinforces' Britain's geographical inequalities. 'It's a bit of a self-reinforcing cycle, in that we've got these better jobs in London, and therefore London pulls in talent from all across the country,' she says. As a result, 'we have places outside the South East especially suffering from that brain drain,' Xu adds. Companies are looking beyond London There are efforts to buck this trend, as other UK cities look to attract talent of their own. Manchester is successfully pulling in early-career workers from surrounding areas. These workers – unlike those who leave for London – are more likely to return to the locale they grew up in once they reach their early 30s. Manchester is a 'great base' for career-starters, says Paul Marriott, managing director of recruitment service, Hays. '[The city has] emerged as a major hub – particularly in sectors like tech, digital marketing, finance and professional services,' he says. 'The city's strong university presence and vibrant business ecosystem make it a natural choice for companies looking to tap into fresh talent.' Last month, at an event in its £1.7bn innovation district, Manchester positioned itself as the burgeoning capital of the UK's £120m life sciences sector – and businesses across the board appear to have cottoned on to its appeal. After launching its newsroom in Leeds a couple of years ago, Channel 4 is to open offices at Manchester's £150m No 1 St Michael's, while BT has also signed off on a new flagship hub for 2,000 staff. At the end of last year, IBM also confirmed it would be pitching up in the city. Governmental departments have also been on the move away from London. In May, it was announced that thousands of civil service jobs would be relocated across UK towns and cities, requiring more senior and policy roles to be based outside the capital. 'We're certainly seeing a noticeable shift as companies look beyond London to expand their footprint,' says Marriott, with the likes of Manchester, Birmingham, Leeds and Bristol 'investing heavily in infrastructure, innovation hubs and culture to attract top-tier talent'. From a recruitment standpoint, he says this decentralisation is creating 'exciting opportunities'. It's beneficial for workers, too. 'Professionals now have more access to high-quality opportunities without the financial strain of London living, while employers benefit from a broader, more diverse talent pool,' Marriott says. However, the expansion of cities outside London can compound the issue of young people upping sticks in smaller towns. 'It can mean that other regions – particularly rural or less economically developed areas – can struggle to retain graduates,' Marriott says. Hybrid work, he suggests, may be one way to stave this off, as it allows people to stay local while accessing opportunities on a national or international scale. But the buzz being generated by cities investing big will inevitably reinforce talent silos across the UK. 'The key challenge now is ensuring that regions outside the major cities continue to invest in career pathways and infrastructure to keep talent engaged and rooted,' Marriott adds. 'It's a myth that we're earning bucketloads in London' If well-executed, this investment could lure graduates away from the likes of London, where the financial strain is increasingly being felt. Between the rising cost of living and paltry salaries – in April, a quarter of entry-level jobs requiring a degree paid just above the minimum wage, while in January, the average rent in London was £2,300 per month – corporate life in the capital doesn't always feel lucrative, Woodman says. 'It's a myth that in London we're earning bucketloads. In the grand scheme of things, I still believe I'm underpaid for the city in which I live, but it is better than being in the suburbs.' Xu says that even if figures don't currently look all too promising for graduates moving to the capital, relocating for work does usually pay off. 'At the start of their careers, there's not a huge difference between graduate pay in London and other cities like Oxford and Cambridge. Then, several years into their careers, that gap massively widens,' she explains. 'People at the very top of the distribution of ability are going to have much, much higher incomes. And as a proportion of their incomes, rents will be lower, so they will still see substantial gains to being in London.' Xu believes that while Manchester has increased its ability to draw leavers back, the influx of graduates descending on London – and never returning – is set to continue. 'People are moving to London because there are opportunities, but then there are opportunities because all the talent is in London,' she says. 'It's hard to break out of that cycle.'
Khaleej Times
16-07-2025
- Business
- Khaleej Times
UAE President Sheikh Mohamed begins state visit to Turkey
UAE President Sheikh Mohamed bin Zayed Al Nahyan will begin a state visit to Turkey on Wednesday, July 16. During the visit, Sheikh Mohamed will hold talks with Turkish President Recep Tayyip Erdoğan to explore ways of enhancing cooperation in support of both nations' development priorities. The talks will also cover a range of regional and international issues of mutual interest. The Emirati-Turkish relations have witnessed a strong push towards new pathways of sustainable growth and economic prosperity, culminating in the signing of the Comprehensive Economic Partnership Agreement, which benefits the peoples of the two friendly nations. A few days before the visit, the two leaders spoke over a phone call to discuss bilateral cooperation across all sectors that support development and progress in both nations and serve shared interests. The two leaders also emphasised the importance of enhancing coordination to resolve regional crises through dialogue and diplomacy, which they affirmed remains the only path to achieving lasting peace and stability in the region.
BBC News
10-07-2025
- Business
- BBC News
Mayor announces underground trains and trams plan for Manchester
A new underground system for trains and trams is being planned for Manchester city centre, the mayor has said. As he outlined the region's 10-year strategy, Greater Manchester Mayor Andy Burnham said it was "essential" to the city's future economic prosperity that a transport system was built said he envisaged two lines in the city - one running from North to South and the other East to West - with Manchester Piccadilly Station at the centre as the "Kings Cross of the north of England"."This isn't a pipe dream - we will not accept anything else," he said. He said planning needed to start now for an underground system "as we get towards the 2040s going towards the 2050s".The mayor said the development would see a new underground station in Manchester Piccadilly alongside the new Liverpool-Manchester railway line. He told BBC Radio Manchester: "I don't feel adventurous saying this - it is essential."This city is the fastest growing in the UK and my message to government is that you can't take this growth for granted.""We've got a bigger and bigger economy - every year more people are working here, more people are studying here and more people visiting here."The mayor said going underground was the only option as the land above was needed for development and attracting businesses."You would be creating a source of business rates for decades," he said. 'Heart of northern economy' Burnham said this could create the kind of regeneration at Manchester Piccadilly that has taken place around London's Kings Cross added: "Piccadilly should be the Kings Cross of the north of England - it could be the beating heart of the northern economy."Manchester politicians have previously toyed with an underground plan from Piccadilly to Victoria stations with a subterranean tunnel in the 1970s nicknamed "Picc-Vic" which was ultimately he outlined the new plan on Wednesday night, Burnham said: "I want TfGM [Transport for Greater Manchester] to start preparing the original, first concept for what an underground for Manchester might look like. I'm going to open the earliest conversation with the government on what the funding mechanism will look like."The BBC has contacted the Department for Transport for a comment. Other pledges made by Burnham included the introduction of half-price bus travel for 18-21 year olds from September and a free 24-hour bus travel pilot program for older and disabled people to begin in August.A new tram stop to service new homes in Victoria North, the extension of Metrolink to Stockport and commuter lines being brought into the Bee Network have also been included. Listen to the best of BBC Radio Manchester on Sounds and follow BBC Manchester on Facebook, X, and Instagram. You can also send story ideas via Whatsapp to 0808 100 2230.
Yahoo
10-07-2025
- Business
- Yahoo
Reeves warned it's ‘now or never' to save the City
Rachel Reeves has been warned she must act 'now or never' to give Britain's financial services a Singapore-style revamp or risk the City sliding into irrelevance. The City of London Corporation, which represents the interests of the Square Mile, urged the Chancellor to create a financial services investment hub to make it easier for foreign investors to invest in the UK. Chris Hayward, the authority's policy chairman, said Singapore and other financial centres had introduced methods of fast-tracking investments to boost inbound spending from foreigners – a move the UK could copy. The timing is significant because Ms Reeves is scheduled to deliver her Mansion House speech next week. The set piece event, where the Chancellor will lay out her financial services policy objectives, is hosted by the Corporation each year. She is facing growing pressure from trade groups to come up with bolder solutions to lift the gloom engulfing the Square Mile. Mr Hayward said: 'This is a now-or-never moment for UK financial services. If we don't act decisively, we risk losing our global position and the economic prosperity, jobs and innovation that come with it. 'The UK must urgently first match, then exceed these standards to remain competitive. This is an opportunity to protect and grow our future prosperity by encouraging government departments and regulators to work more collaboratively.' It comes after the Confederation of British Industry (CBI) called on Ms Reeves to introduce significant reforms to ensure the London Stock Exchange remains competitive. Rupert Soames, the CBI chairman, warned that London 'has seen a far greater loss of domestic liquidity than other markets' as investors shun buying UK shares. Mr Soames, who is also chairman of the FTSE 100-listed Smith & Nephew, added that London had 'also seen a higher level of attrition of membership' caused by companies leaving the stock market and going private. In recent years, the London market has suffered a string of high-profile exits, with companies abandoning listing in London for higher valuations in New York. A number of FTSE 350 businesses have also been taken private as low valuations make them an attractive takeover target. In her Mansion House speech, the Chancellor is expected to lay out a shake-up of mortgage rules and announce a cut to the annual tax-free cash Isa allowance. Earlier this year, Jeremy Hunt, the former chancellor, said the UK should copy the model of Singapore in order to improve prosperity and drive economic growth. Mr Hunt also urged the Prime Minister to pursue reforms to make Britain a low-tax nation that welcomed free trade. The phrase 'Singapore-on-Thames' has become shorthand for the goal of turning the country into a low-tax economy with a flexible jobs market and educated workforce. 'Countries like Singapore demonstrate, openness can still deliver excellent results. Over the last half century, its living standards have grown five times faster than ours,' Mr Hunt wrote in The Telegraph. The Treasury was contacted for comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Telegraph
10-07-2025
- Business
- Telegraph
Reeves warned it's ‘now or never' to save the City
Rachel Reeves has been warned she must act 'now or never' to give Britain's financial services a Singapore-style revamp or risk the City sliding into irrelevance. The City of London Corporation, which represents the interests of the Square Mile, has urged the Chancellor to create a financial services investment hub to make it easier for foreign investors to invest in the UK. Chris Hayward, the authority's policy chairman, said Singapore and other financial centres had introduced methods of fast-tracking investments to boost inbound spending from foreigners – a move the UK could copy. The timing is significant because Ms Reeves is scheduled to deliver her Mansion House speech next week. The set-piece event, where the Chancellor will lay out her financial services policy objectives, is hosted by the Corporation each year. She is facing growing pressure from trade groups to come up with bolder solutions to lift the gloom engulfing the Square Mile. Mr Hayward said: 'This is a now-or-never moment for UK financial services. If we don't act decisively, we risk losing our global position and the economic prosperity, jobs and innovation that come with it. 'The UK must urgently first match, then exceed these standards to remain competitive. This is an opportunity to protect and grow our future prosperity by encouraging government departments and regulators to work more collaboratively.' It comes after the Confederation of British Industry (CBI) called on Ms Reeves to introduce significant reforms to ensure the London Stock Exchange remains competitive. Rupert Soames, the CBI chairman, warned that London had 'seen a far greater loss of domestic liquidity than other markets' as investors shun buying UK shares. Mr Soames, who is also chairman of the FTSE 100-listed Smith & Nephew, added that London had 'also seen a higher level of attrition of membership' caused by companies leaving the stock market and going private. In recent years, the London market has suffered a string of high-profile exits, with companies abandoning listing in London for higher valuations in New York. A number of FTSE 350 businesses have also been taken private as low valuations make them an attractive takeover target. In her Mansion House speech, the Chancellor is expected to lay out a shake-up of mortgage rules and announce a cut to the annual tax-free cash Isa allowance. Earlier this year, Jeremy Hunt, the former chancellor, said the UK should copy the model of Singapore in order to improve prosperity and drive economic growth. Mr Hunt urged the Prime Minister to pursue reforms to make Britain a low-tax nation that welcomed free trade. The phrase ' Singapore-on-Thames ' has become shorthand for the goal of turning the country into a low-tax economy with a flexible jobs market and educated workforce. 'Countries like Singapore demonstrate [that] openness can still deliver excellent results. Over the last half century, its living standards have grown five times faster than ours,' Mr Hunt wrote in The Telegraph.
