Birmingham can no longer be a tale of two cities – council leader

Birmingham must utilise its economic potential to fix the stark inequalities that exist across the city.

That was the message from Birmingham City Council leader Cllr John Cotton at the launch of the 2025 Birmingham Economic Review, hosted by Greater Birmingham Chambers of Commerce and the University of Birmingham at The Exchange yesterday. 

Cllr Cotton, who delivered the keynote address to more than 100 delegates at the launch of the annual report, said Birmingham is currently viewed as “a tale of two cities” because of the disparity between its richest and poorest residents.

But with the 2025 Economic Review – produced by the University of Birmingham’s City-REDI in partnership with the Chamber – highlighting the city’s vast potential in several emerging industries, Cllr Cotton said the growth and investment opportunities must be harnessed to close the inequality gap.

He said: “I refer to Birmingham as a tale two of cities. We have a city that is about growth.

“It’s about investment - as you can see outside the window, with the cranes in the sky.

“But we also know there’s another Birmingham where child poverty levels are well above the national average – over 50 per cent in some cases.

“We have some of the highest levels of unemployment in the country, we have a decade gap in life expectancy between the richest and the poorest.

“So, we have to use these great opportunities to fix those things that are still holding too many people and too many lives back.

“If we don’t fix this, we are creating a huge problem for ourselves. It’s not just a social problem, it’s an economic problem.

“And the Economic Review makes it clear that collaboration is critical - success for our city has to be built through a team effort.”

Cllr Cotton said a host of major projects and investments – including the Sports and Knowledge Quarters – demonstrate confidence in the city’s future.

He added: “There are so many reasons for optimism when we look at Birmingham’s economic future, and, of course, it has been a challenging couple of years for city - there's no doubt about that.

“But some people spend their time talking to city down and other people have struggled to find Birmingham on the map, frankly, let alone come here.

“What I do know is, more importantly, governments, investors, and businesses know Birmingham is absolutely back.

“A couple of months ago, we hosted the Government’s Investment Summit and there was last week's announcement that Goldman Sachs is set to double the number of jobs at its Birmingham office.

“These are tangible votes of confidence in Birmingham's future.”

The 2025 Birmingham Economic Review presents are positive outlook for Birmingham’s economic future thanks to high levels of foreign direct investment (FDI), growing tourism numbers and emerging clusters in AI, clean energy and life sciences.

However, it also says digital skills shortages and unequal access to technology could risk widening inequalities, if unaddressed.

The launch event, chair by the GBCC’s acting deputy CEO Raj Kandola, also featured a panel discussion with Rigby Group co-chief executive Steve Rigby, Chamber vice-president and Pertemps Network Group chair Carmen Watson and City-REDI’s Professor Anne Green.

They addressed a range of issues including the impact of President Trump’s tariffs on the automotive industry, emerging recruitment and skills challenges, AI adoption and the impact of the Government’s economic policies.

Pictured: From left - Professor Helen Abbott (pro-vice-chancellor/head of the College of Arts and Law, University of Birmingham), Cllr John Cotton, Raj Kandola, Carmen Watson, Professor Anne Green and Steve Rigby