London could be the worst hit among cities across Britain by the current recession, with almost two in five jobs at risk over the next two years, says a new report published on Monday.
The report titled 'From Recession to Recovery: The Local Dimension' released by the Local Government Association (LGA) at its credit crunch summit in London, projects how each area of the country could be affected differently by the economic downturn if no action is taken.
The renaissance of northern cities has positioned them relatively well to weather the economic storm, it says. London, however, performed poorly in the last two recessions, with relatively few industries.
It foresees that by December 2010 up to 370,000 jobs, about 7.9 of all jobs in the capital, could be lost.
The hardest hit industries will be construction and manufacturing, while high-skilled industries look set to remain relatively unscathed, the report says.
The LGA, which represents councils in England, warns that a national, blanket policy to deal with the recession will be unable to bring effective help to specific areas.
"Global problems have tipped the British economy into a recession that is affecting countries around the world. The Government has acted at international and national levels, councils are now taking a lead in the effort to find local solutions to local problems," said Margaret Eaton, chairman of the LGA.
She noted that councils are already in action, trying to keep people in their own homes, offering support to the unemployed, and helping small businesses stay afloat, in a bid to protect local people and businesses from the worst effects of the slump and make rapid progress toward recovery.