Swansea and Newport are being described as “vulnerable” in a new study on economic recovery
Centre for Cities says they’re two of five across the UK which will be affected by spending cuts and will need extra financial support.
According to the Centre for Cities annual report, Cities Outlook 2011, Swansea, Newport, Sunderland, Liverpool and Birkenhead are among the cities most vulnerable to the uneven spread of the economic recovery.
The report says that “low skill levels and levels of business activity, more people employed in the public sector, and more people claiming unemployment benefits” mean that spending cuts will have a disproportionately negative affect on these areas.
It concludes that additional financial support from central government, and local action plans are needed to protect these cities.
Job losses in the Passport Office in Newport and DVLA in Swansea have been announced in recent months.
The Welsh Assembly Government spokesperson said the assembly was using all the powers at its disposal to stimulate job creation.
“We want to see these cities recover and thrive”
Plans include maximising development in the SA1 area in Swansea and building on the Ryder Cup legacy in Newport, with the electrification of the rail line between London and Swansea described as “vital” to help boost the Welsh economy by the spokesman.
“Our new economic policy aims to help grow the private sector and encourage entrepreneurs so they can create the jobs and prosperity we rely on.
“It must be remembered that many of the levers to address worklessness – such as the benefits system and taxation – are not devolved and rest with the UK Government.”