The renaissance of our leading cities, like Leeds, Liverpool and Manchester, has been the engine of recent prosperity and will be the motor of recovery too. The latest data indicates that the rise in unemployment is spread fairly evenly across the country. However, as the Centre for Cities' report highlights, towns and cities in Britain will be affected in different ways, reflecting their distinctive local populations and industries. We are determined to avoid the mistakes of previous recessions, when some areas were disproportionately hit by unemployment and then held back from taking advantage of the opportunities of recovery.

The government is providing £500m in extra support for those who have been on Jobseekers Allowance for six months, to help prevent the long term unemployment that scarred so many lives and communities in previous recessions. That's on top of the £1.3bn invested before Christmas to ensure people get the help they need from the moment they lose their job. But I know that a purely 'national' response will not be enough. That's why, for example, Jobcentre Plus is using Local Employment Partnerships to tailor support to local employers and labour markets. Cities and local government can also make a major contribution through fostering economic development and supporting people back in to work - for instance through innovative use of the Working Neighbourhoods Fund. We want to work collaboratively with local areas to complement national action.

The downturn also makes it even more important that we continue to reform the welfare system, with more support matched by higher expectations, so that no-one is written off. If the jobs market is tougher, we must do more, not less, to help people prepare for a return to work. The Centre for Cities has rightly highlighted the concentrations of worklessness that remain in some of our major cities. And so there is a vital debate to be had about localism in welfare. Our goal is better outcomes for people through action tailored to local areas. That's why we're developing the concept of 'earned devolution'. My challenge to cities is simple: show us you can add value, bring people together and deliver results - and we will give you the power to succeed.