This means that firms are more efficient if they are clustered together, with cities better locations for businesses than towns. Regional policy, to the limited extent that it currently exists, has involved encouraging regional hubs in the hope that they will pull up the struggling towns on their peripheries. Commuting makes a difference because the number of jobs in each area is not necessarily the same as the number of residents in work. The mix of industries also matters: some parts of the country have a high concentration of high productivity jobs – such as banking, finance and business services. London has a smaller over-65 population than elsewhere, which brings its GVA per capita down to 165% of the national average.

Source: The Guardian July 21, 2019 10:15 UTC