The Scottish Government

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Competitive Scottish Cities?
Placing Scotland's cities in the UK and European context

Innovation - R&D expenditure up but still lagging

2.15 Expenditure on Research and Development increased by 97% across Scotland between 1994 and 2002. This is ahead of the rest of the UK where expenditure increased by 18% during the same period. 4.9% of the UK's expenditure on R&D is now located in Scotland, up from 3% in 1994. Despite this increase, per capita expenditure on R&D is still notably less in Scotland than in the rest of the UK. Expenditure on R&D is concentrated in the South Eastern and Eastern regions of England, these two regions account for 52% of the UK's R&D expenditure in 2001. ³

Table 2.5: Expenditure on R&D - real terms (2002 Prices)

Source: Scottish Executive "Business Enterprise Research and Development in Scotland 2002"

2.16 Expenditure on R&D in Scotland in concentrated in a few key Local Authorities. West Lothian accounts for 29.8% of Scottish R&D expenditure, Edinburgh for 19.7% and Dundee for 9%. Increases in expenditure on R&D are not evenly distributed across the Scottish Local Authorities, often the greatest percentage increases are seen in areas with the lowest total expenditure on R&D. Amongst those Local Authority areas that account for 2% or more of Scotland's R&D expenditure Midlothian, South Lanarkshire and West Lothian had increases of over 100% between 2000 and 2002.

Figure 2.8 % Share R&D expenditure 2002

Source: Scottish Executive "Business Enterprise Research and Development in Scotland 2002"

Table 2.6: Expenditure on R&D - real terms (2002 Prices)

Source: Scottish Executive "Business Enterprise Research and Development in Scotland 2002"

Wages rising ahead of regional trends

2.17 In many of the Scottish and English Core Cities mean full-time weekly wages are higher than their regional average, but only Aberdeen has mean earnings higher than the GB average. The GB average is influenced by significantly higher wages in London (£637) and the South East (£505). The only Scottish city to have average mean-full time weekly earnings below the Scottish average is Stirling, although Stirling has experienced the biggest percentage increase in full time weekly wages between 1999 and 2003.

Figure 2.9: Mean full-time weekly wages 2003

Source: ONS/NOMIS New Earnings Survey 2003

Table 2.7: Mean full time earnings 1999-2003

Source: ONS/NOMIS New Earnings Survey

2.18 Preliminary analysis of residence-based New Earnings Survey data indicates that those who live within the city boundaries are earning slightly less than those who work within the city boundaries. This suggests that higher paid jobs are, to some degree, taken by in-commuters.

Unemployment falling but some disparities remain

2.19 Unemployment has fallen significantly over the last eight years, down 3.7 percentage points across Great Britain, to just 2.5% in 2004. In Glasgow the claimant count unemployment rate fell by 4.8 percentage points from 9.4% in 1996 to 4.6% in 2004. And in Stirling, Edinburgh and Dundee the claimant count unemployment rate is now below the Scottish average. Scottish cities perform well in comparison to the English Core Cities where, despite significant falls, the claimant count unemployment rate remains stubbornly above the national average in all cities except Bristol.

Figure 2.10: Claimant count unemployment rate 1996-2004

Source: ONS/NOMIS Claimant Count

Figure 2.11: Claimant count unemployment rate 1996-2004

Source: ONS/NOMIS Claimant Count

2.20 The ILO unemployment rate taken from the Labour Force Survey is generally considered to provide a more robust indication of unemployment levels. The broader definition on the ILO measure results in higher unemployment rates for the Scottish cities. However the trend is still downwards. Overall falls mark considerable variation between the Scottish and English Core Cities.

2.21 In terms of ILO unemployment rates, Aberdeen and Edinburgh perform well. Glasgow and Dundee have unemployment patterns more in line with the Northern English Core Cities.

Table 2.8: ILO unemployment rate 1996-2003

# Data not released due to small sample
Source: ONS/NOMIS Annual Labour Force Survey

2.22 In Scotland ILO unemployment rates vary from 8.3% in Dundee and Glasgow to just 3.6% in Aberdeen, significantly below the Scottish average. Leeds is the only English Core City to have an ILO unemployment rate that is lower than the regional rate.

Figure 2.12: ILO unemployment rate 2003/04

Source: ONS/NOMIS Annual Labour Force Survey

House Prices

2.23 The average price of all residential property sold in the first quarter of 2004 is shown in Figure 2.13. The average price of property sold in Scotland during quarter one of 2004 was, at £106,900, lower than in England where the average was £166,404. Amongst the Scottish cities, Edinburgh had the highest average price for property sold in the first quarter of 2004 - £155,700. House prices in the other Scottish cities are below those in the English Core Cities with the exception of Manchester and Liverpool.

Figure 2.13: Average house prices Quarter 1 2004

Source: HM Land Registry/ Registers of Scotland Executive Agency

2.24 House prices across the Scottish cities are up by 44.1% since 2001. However, these increases are not evenly distributed. For example, the average price of residential property sold and registered in Edinburgh was up by 55.4% between the first quarter of 2001 and 2004.

2.25 This house price data comes with health warnings. The data here includes all types of properties, and the type of property sold can impact on the average price. These figures are based on the actual properties sold, and in the case of the Scottish data registered with the Registers of Scotland. The type of property sold varies by quarter; one quarter could be dominated by high-end semi-detached property the next by low-end terraced homes. The data for some of the Scottish cities is also based on relatively few sales. This helps to explain the fall in house prices in Dundee and Aberdeen between 2001 and 2003 and in Stirling 2002 to 2003.

2.26 Despite these limitations the data suggests that there is higher demand for property in Edinburgh, Glasgow and Inverness than in the other Scottish cities.

Table 2.9: Average price of residential property sold Q1 of each year 2001-2004

Source: HM Land Registry/ Registers of Scotland
Note: Average house price data excludes properties sold for under £20,000 and those sold for more than £1million
Data for Inverness based on Inverness Postal District
Data for the other Scottish cities based on approximations of Local Authority Boundaries
Scottish data is based on sales where ROS have received an application for registration.

Educational Attainment - Scotland's well-qualified workforce

2.27 The educational attainment of young people living in urban areas across the UK is relatively poor. Historically the number of young people living in cities and attaining qualifications is lower than the national and regional average. As the Scottish qualifications system is different from that in the rest of the UK, direct comparisons with English cities cannot be made. However it appears that Scottish cities do not underachieve to the same extent as their English counterparts. In 2004, only Dundee and Glasgow had attainment levels below the Scottish average. However, staying on rates are lower in the six Scottish cities than the Scottish average.

Table 2.10: Examination results and staying on rates 2004

Source: SEED Statistical publication notice "SQA Examination results in Scottish schools: 2003/4"
Note: Data not available for Inverness

2.28 Scottish examination results data is available at school and Local Education Authority level. However, this data only relates to publicly funded schools and this can distort the overall picture. For example, across Scotland 7% of pupils are educated privately, although in Edinburgh the figure is 25%. Examination results can only give part of the picture in respect of pupil attainment. The data does not provide a measure of the value added by schools or the final destinations of pupils.

2.29 Examination results at years S4, S5 and S6 have been improving slightly year on year, although the performance of Glasgow and Dundee remain well below the national average.

Figure 2.14: Percentage of Yr 4 achieving 5+ awards at level 5 or better

Source: SEED Statistical publication notice "SQA Examination results in Scottish schools: 2003
Note: Data not available for Inverness

2.30 Scotland has a well-qualified workforce: 28% of working age residents are qualified to NVQ level 4 or above (equivalent to degree level). The proportion of working age residents qualified to this level is notably higher in Edinburgh (37.3%), Aberdeen (36.5%) and Stirling (35.5%). In terms of a well-qualified workforce the Scottish cities out perform all the English Core Cities, with the exception of Bristol.

Figure 2.15: Proportion of working age population qualified to NVQ level 4+ 2002

Source: ONS/NOMIS Annual Labour Force Survey 2002
Note: Data not available for Inverness

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