The UK is facing a difficult decade. It will take three to four years for the economy to recover, and even longer for the labour market to recover. That means up to ten years of 'jobless growth', with rising unemployment in the short term. Combine this with an increasingly urgent need to respond to climate change and severe public expenditure constraints and it is clear that the next ten years will be quite different from the last.

Cities, as the places in which most people live and work, will feel the effects of these changes. But, as drivers of economic growth before the recession and the places in which the future growth sectors are most likely to locate, cities are also the places with the potential to rise to these challenges and drive sustainable economic growth in the recovery. Cities offer individuals access to employment opportunities, leisure, culture and the 'buzz' of urban life, whether people choose to live in the heart of the city centre or in neighbouring areas within commuting distance. And they offer businesses access to consumers, specialist skills and the opportunities to exchange ideas. Whilst the next decade will be difficult, it will be cities in which the future growth sectors are located.

So what do cities need to do to enable this economic growth in the future - and what needs to change? This is precisely the topic that The Work Foundation is investigating in association with Oxford Economics commissioned by Core Cities - the eight largest cities in England outside London. Our interim report argues that there are four actions required.

First, there is a need for the eight Core Cities to work together to rebalance the economy and to implement a 'national innovation architecture', investing in City Based Innovation Panels, more access to venture capital and more support for small innovative firms.

Second, the eight Core Cities can take a lead in job creation and addressing climate change through public procurement for 'green' buildings and infrastructure, creating jobs and additional demand for low carbon goods and services.

Third, the Core Cities can make a significant impact on raising skills supply and demand if skills and employment policy can be determined at a local level, building on existing devolution.

And fourth, the Core Cities need the financial freedoms and flexibilities to fund these investments in a way that works for their areas.

Over the next two months we are developing our work further into a series of detailed policy recommendations. Our cities are ready to take up the challenge of driving future economic growth. Now is the time to take the action that enables them to do this.