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UK cities London 'dependent'

Deputy Prime Minister Nick Clegg will warn today against the London-centric business model, that has cost the economy more than £40 billion a year, allowing other UK cities to "wither".

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Clegg: Previous governments 'bewitched' by London

In a speech to be delivered later today, Nick Clegg will say it is within "everyone's interests" to rebuild the economy so that it benefits the UK as a whole, and not just the capital.

The Deputy Prime Minister will express fears over the "highly-centralised" design of the UK economy, with much of the focus on the city of London.

From the big bang right until what was a monumental crash, the Labour and Conservative governments of the day were so bewitched by London's financial services that they squandered other industries and allowed other communities to wither.

The previous government, in particular, recycled and redistributed City of London tax receipts to other parts of the country through the long arm of Whitehall.

Emasculating the north and overburdening the south. Trying to prop up a nation of 100,000 square miles on the profits of just a single Square Mile.

– Nick Clegg, Deputy Prime Minister

Clegg: 'Must be more than one jewel in our crown'

In an address to financiers and city figures today, Nick Clegg will warn about the London-centric economy.

He is expected to say the country could benefit from an additional £41 billion a year if the economy gap between London and other UK cities was closed.

It is in everyone's interests - not least London's itself - if that potential is now tapped. There can - and must - be more than one jewel in our crown.

The challenge for us is to rebuild our economy so that it runs on all cylinders.

– Nick Clegg, Deputy Prime Minister

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Nick Clegg: London dominance means UK cities 'wither'

Deputy Prime Minister Nick Clegg will today warn against the London-centric business model, that has cost the economy more than £40 billion a year.

Nick Clegg will deliver his speech to speech to financiers and leading city figures at Mansion House Credit: Stefan Rousseau/PA Wire

Speaking at Mansion House today, Mr Clegg will claim the rest of the UK cities are losing out to the dominance of the capital.

He will say further efforts to restore local control are needed to put it right.

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