23-06-2025
Second cities and devolved regions can play a key role in tackling regional inequality — if supported by effective devolution, finds a new report from the Chartered Institute of Public Finance and Accountancy (CIPFA) and City-REDI (City-Region Economic Development Institute) at the University of Birmingham.
Published today, 'Enabling Regional Growth: Institutional and Fiscal Lessons from England and Japan' explores how second cities can drive inclusive, long-term growth. Through comparative case studies of Birmingham in the West Midlands and Osaka in the Kansai region, the research provides a practical framework for implementing devolution effectively. Insights focus on actionable steps to build strong institutions, flexible regional groupings, and sustainable funding models.
The experiences of Birmingham and Osaka, and their wider regions, show how place-specific strategies, strong regional leadership and cross-tier collaboration can generate meaningful progress outside of national capital regions. The report further demonstrates the value of international knowledge exchange — a finding in itself.
For long-term regional success, policymakers and regional leaders should focus on four key enablers:
- Stable institutions: Consistent governance structures help build momentum and accountability.
- Functional regional groupings: Flexible collaborations based on shared economies and identity enable more effective partnerships.
- Empowering funding models: Adequate, fair and locally influenced funding supports tailored investment strategies.
- Embedded monitoring and learning: Evaluation systems should track outcomes, not just outputs, and feed back into strategy.
Jeffrey Matsu, CIPFA Chief Economist and report co-author, said:
“Too often, second cities are seen through the lens of their capital counterparts. This research shows they can be powerful drivers of change and economic growth. But to succeed, they need stable institutions, the right funding, and space to lead.”
Professor Anne Green, University of Birmingham and report co-author, said:
“There is no single blueprint for regional development. But what Birmingham and Osaka, and their wider regions demonstrate is that learning from others — especially across borders — can sharpen local strategies and unlock shared solutions to complex challenges.”
Notes to editor
A CIPFA spokesperson is available for interview, please contact press@cipfa.org.
Read the full Enabling Regional Growth report
Watch the Enabling Regional Growth video
About City-REDI at the University of Birmingham
The City-Region Economic Development Institute (City-REDI) is a leading research institute at the University of Birmingham focused on regional economic development and policy. The University of Birmingham is a leading UK and global university. It has a strong tradition of civic engagement with local and regional partners undertaken alongside nationally and internationally oriented research.
About CIPFA
The Chartered Institute of Public Finance and Accountancy is a UK-based international accountancy membership and standard-setting body. We are the only such body globally dedicated to public financial management.