In depression collecting pounds in aid of English city (7)

I believe the answer is:

salford

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'city' is the definition.
(I have seen 'northern city' mean 'salford' so perhaps 'city' could also mean 'salford')

I don't understand how the rest of the clue works.

Can you help me to learn more?

(Other definitions for salford that I've seen before include "northern city" , "Greater Manchester city" , "location of MediaCityUK" , "L. S._Lowry's home town" .)

I've seen this clue in The Times.

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