Cambridge Was Fastest Growing Economy At End Of 2017
City economies within the ‘Northern Powerhouse’ and the ‘Midlands Engine’ are expected to be growing at half the speed of Milton Keynes, Reading and Cambridge by 2028, according to the latest UK Powerhouse report published by law firm Irwin Mitchell.
The quarterly study, which is produced by the Centre for Economic & Business Research (Cebr), reveals that the league table of the top 10 fastest growing city economies will continue to be dominated by locations in the South of England.
Utilising Cebr’s sophisticated economic modelling, the latest UK Powerhouse highlights that the Government’s plans to rebalance the UK economy are not working and that more needs to be done to unlock regional growth.
It predicts Milton Keynes, Reading and Cambridge will be in the top three for GVA* growth by the end of 2028, whilst Manchester will be in 25th place, Leeds in 33rd and Newcastle in 36th position. The three fastest growing cities in terms of employment are expected to be Bournemouth, Bristol and Swindon.
Commenting on the report’s findings, Victoria Brackett, chief executive of Irwin Mitchell’s Business Legal Services division, said:
Expert Opinion“Our report highlights that the faster rates of economic growth continue to be concentrated in locations in the South and around the so-called ‘Cambridge-Milton Keynes-Oxford Arc’. All businesses need to operate in an economic environment that allows them to flourish and we firmly believe the government can do more.” Victoria Brackett - Group Chief Commercial Officer
UK Powerhouse also reveals that Cambridge had the UK’s fastest-growing city economy in the final three months of 2017.
The report, which publishes economic data on city economies one year ahead of the Government’s official figures, placed Derby in second position. Inner London rose by 10 places in the table, suggesting this could be a signal that growth is returning to the capital after Brexit uncertainty had been plaguing confidence.
Josie Dent, an economist at Cebr, said: “In the latest edition of the UK Powerhouse table, the traditional high-growth cities of Cambridge and Oxford stayed near the top for GVA growth, while Derby rose to a strong second place in the last quarter of 2017.
“Derby benefits from a strong manufacturing base with factories for Toyota, Rolls-Royce, and Bombardier Transportation, which have enjoyed a competitive export advantage due to the weak pound in 2017 and strong international demand. In terms of employment growth, the southern cities of Bournemouth and Exeter performed well according to the latest data, with annual growth rates of over 1% in Q4 2017.”
Commenting on the recent performance of the UK’s economy, Victoria Brackett added:
Expert Opinion“This latest report paints a mixed picture for the economy. Although quarterly growth within the services and manufacturing sectors performed well, construction continued to struggle and household consumption growth fell.
“Gross fixed capital investment however grew by 1.1% quarter-on-quarter, compared with a 0.2% increase between Q2 and Q3. There is the potential for business investment to pick up significantly over this year and next, particularly if Brexit negotiations deliver further clarity to firms regarding the UK’s future economic position.”
Victoria Brackett - Group Chief Commercial Officer
* Gross value added – the total value of goods and services produced.