Covid-19 makes improving Scotland’s economy almost four times harder

 Dundee faces the biggest challenge in Scotland

• Glasgow also faces a big challenge.
• Better adult education, transport investment and improvements to Scotland’s urban centres needed.

Covid-19’s economic damage makes the task of improving Scotland’s economy and spreading prosperity almost four times harder according to Centre for Cities’ annual study of the UK’s major urban areas – Cities Outlook 2021.

30,900 people in Scotland’s largest cities now need to find secure, well-paid jobs to rebuild and improve the economy – compared to 8,600 last March.

 In Scotland, Dundee faces he biggest challenge, followed closely by Glasgow.

Scottish cities facing the biggest economic challenges post-Covid
Rank	City	Percentage point reduction in unemployment to rebuild and improve the economy
1	Dundee	4.1
2	Glasgow	4.1
3	Aberdeen	3.4
4	Edinburgh	3.0
Source: ONS, Claimant count 2020, population estimates 2019.

In addition to hitting some Scottish cities and the rest of the UK as a whole badly, Covid-19 has also hit many previously prosperous places such as Edinburgh, Aberdeen and London disproportionately hard.

The Government must act fast to prevent a levelling down of these places that the whole UK depends on to create jobs and fund public services.

The UK and Scottish Governments should announce how they will use their respective powers to deal with Covid-19’s short-term damage to cities and large towns. The plans should include:

• Making permanent the £20 rise in Universal Credit.
• Supporting jobless people to find new good jobs.
• Consider the merits of a renewed Eat Out to Help Out scheme for hospitality and non-online retailers once it is safe.

Acting to prevent further economic damage by Covid-19 is not the same as levelling up. Once the health crisis ends, the Scottish Government will need to spend additional money on further measures to level up, including:

• Further education to train jobless people for good roles in emerging industries.
• Making city centres better places for high-skilled businesses to locate.
• Improvements to transport infrastructure in city-regions.

Centre for Cities Chief Executive Andrew Carter said:  “Covid-19 has made the task of improving Scotland’s economy and spreading prosperity around its cities and towns much harder.

“Rebuilding and strengthening the economy of Scotland and its cities will not be cheap and will require more than short-term handouts. Government support and investment for new businesses in emerging industries will be essential, as will spending on further education to train people to do the good-quality jobs created.”