70 businesses based in Derby are taking part in a major new research project for the Centre for Cities. The City Markets project will examine why businesses locate and invest in deprived urban areas. Using the information from Derby's businesses, it will assess the impact of government policies on enterprise, transport, skills and planning.

70 business surveys are currently underway in Derby's 6 Enterprise Areas, including Derwent, Normanton and Sinfin. Similar surveys are being carried in Doncaster and Sunderland. Preliminary findings will be out in September, with the final report published by May 2006. It will aim to influence the future shape of the government's Local Enterprise Growth Initiative (LEGI) – which will fund £300 million of economic development in deprived areas, over 2006-09.

Dermot Finch, Director, Centre for Cities, said:

“Our City Markets project is talking directly to Derby's businesses. We want them to tell us about their priorities and concerns. We will use the findings to recommend changes in Government policy on enterprise, transport, skills and planning and to help Derby and other cities build on their success.”

Russell Rigby, Director, Innes England and City Growth Derby, said:

“I am delighted that Derby has been chosen by the Centre for Cities. This research will be highly complementary to other programmed work currently underway, most specifically City Growth Derby.”

The Centre for Cities is working closely with Derby City Council, Derby Cityscape URC, City Growth Derby, Derby Chamber of Trade, Derby City Partnership and East Midlands Development Agency.

Recent research for ODPM shows that Derby is one of the UK's growth hotspots. The city has recently launched new developments:

• City Growth Derby is devising an evidence-based strategy for local economic development, based on Derby's unique assets;
• Derby Cityscape Masterplan aims to regenerate the city centre, with £1 billion of investment over the next 20 years; and
• The iD Centre – involving Derby City Partnerships, East Midlands Development Agency and the University of Derby – is stimulating entrepreneurship in the city.

Notes to Editors:

City Markets is looking at the changing business profile in deprived areas of small cities and large towns, and why certain businesses choose to locate there. It is also examining the Government's record of promoting enterprise in deprived areas – looking in particular at the Phoenix Fund, Business Link, Enterprise Areas, CDFIs (Community Development Finance Institutions) and CITR (Community Investment Tax Relief).

Enterprise Areas are the 1,997 most deprived wards in the UK. In England, 73 per cent of Enterprise Areas lie within the 88 local authorities which receive support from the Neighbourhood Renewal Fund.

The City Markets business survey is asking questions such as:

• What is the biggest advantage and disadvantage of your local area?
• What is the impact of crime, transport and planning on your business?
• How effective is business support in your area?
• How difficult is it for you to comply with tax obligations?
• How effective are Enterprise Areas and their associated measures?

The Centre for Cities is an independent urban policy research unit, based at the Institute for Public Policy Research (ippr). Launched in March 2005, it is taking a fresh look at how UK cities function. It is funded by Lord Sainsbury of Turville.