Member Article

GDP growth boosts regional economy

Following the announcement that that UK’s GDP grew by 0.8 % in the second quarter of 2014, the impact on the North West region has been outlined in figures released by the government.

Key points include -

Employment:

• More than 3.2 million people are now in jobs in the North West – an increase of nearly 87,000 since 2010
• More than 7,400 people have got jobs through the Regional Growth Fund
• North West private sector employment: Private sector employment is up 44,000 since 2010.
• 56,000 more females in employment under this government.
• Youth Claimant Count: down 22,400 since 2010.

Education/Training:

• More than 314,300 apprenticeships have been created since 2010 – more than anywhere else in the country.
• More than a third (35.6%) applied to go into Higher Education in 2012/13 – the highest rate in England outside of London.
• In the North West 277 more academies and 20 free schools have opened since the election 13,813 more school places have been created since 2010.

Business:

• More than a fifth of all vehicles (325,000) produced by the UK automotive industry last year came from the North West
• More than 12,500 jobs have been secured in the North West thanks to foreign investments over the past year, including 5,689 new jobs

Personal allowances:

• The number of people taken out of tax in the North West since 2010 is 343,000
• By 2015, 2,810,000 people in the North West will benefit from increased personal allowance

Reactions from many of the region’s leading lights were also upbeat.

Edwin Booth, chair of the Booths supermarket chain and Lancashire’s Local Enterprise Partnership, acknowledged the upturn, saying: “Here in Lancashire, the LEP is working hard to create the right conditions for businesses to thrive and we have been seeing positive signs of economic recovery for some time now.

“As well as these latest GDP figures, just this week figures from UKTI showed that foreign investment in the county secured nearly 2,000 jobs in 2013/14, which shows that international businesses share our confidence.

“With major investment in the county through the Lancashire Growth Deal and the Preston, South Ribble and Lancashire City Deal recently announced, and significant infrastructure projects such as the M6 to Heysham link road now underway, the future for the Lancashire economy looks very bright.”

George Beveridge, deputy managing director of Sellafield Ltd and chair of the Cumbria Local Enterprise Partnership, said: “The economic recovery, coupled with targeted investment programmes such as the Regional Growth Fund, has brought about record levels of employment in Cumbria.

“Confidence within the business community is growing and will be boosted further by the recently announced Growth Deal for Cumbria, which will unlock even more opportunity for local businesses and people.”

Mike Blackburn, BT’s regional director for the North West and Chair of Greater Manchester’s Local Enterprise Partnership, said: “It’s encouraging to see that the economy is back on track and we’re especially pleased that UK GDP has now surpassed its pre-recession peak. The challenge for the country as a whole will be to ensure that this momentum continues.

“At a regional level there are still some major challenges to address, not least around skills and employment. We need to ensure that Greater Manchester continues to get investment for new jobs from national projects and funds that are designed to boost the UK economy, such as the Local Growth Fund and HS2. In addition, retaining a solid skills base will be paramount.

“These are both priority areas that we are seeking to address in the delivery of Greater Manchester’s growth and reform plan.”

Robert Hough, chair of Liverpool City Region Local Enterprise Partnership is pleased with progress. He said: “Liverpool City Region has recorded a strong economic performance over recent years and these latest GDP figures underline the progress being made to deliver sustainable economic growth across the City Region.

“Having just secured £232million funding from Government we will be focusing our efforts on delivering the City Region Local Growth Plan, especially around the potential of the city centre and the development of a Freight and Logistics Hub for the city region.

“Our ambitions include being a key centre for Low Carbon Energy generation and development, alongside initiatives such as the recently announced Sensor City University Enterprise Zone.”

Christine Gaskell, chair of the Cheshire and Warrington Local Enterprise Partnership said: “It is vital that the whole country shares in the economic recovery. In Cheshire and Warrington, we are seeing real signs of increased levels of business activity which in turn will lead to more jobs for our workforce.

“From GM Vauxhall announcing 300 new employees at Ellesmere Port to small business start-ups in the service sector, there is a growing wave of optimism in our economy.

“The Cheshire and Warrington Local Enterprise Partnership will continue to invest in those opportunities that make our sub-region 871 square miles of opportunity, innovation and growth.”

Graeme McLaren, sales manager at United Automation Ltd in Southport which manufactures power controls for a wide range of electrical equipment, including heating and air conditioning added:

We’ve definitely been feeling a big increase in confidence recently, and the economy feels a lot more buoyant than it has done for a long time.

“People wouldn’t buy stock up front during the downturn or keep it on their shelves, but that’s all changing now and we’ve been able to invest in developing new products. We’re also hoping we’ll be able to take on two new graduates later in the year.

“Our range of controls for outdoor heating used by pubs and restaurants has had a massive increase in demand recently, so that shows the hospitality industry must be noticing the upturn as well.

“It definitely feels like UK manufacturing is in a great place at the moment. It’s all about letting people know we actually build things in this country.”

This was posted in Bdaily's Members' News section by Simon Malia .