Member Article

Yorkshire’s regional outlook bright after GDP announcement

In Yorkshire, nearly 150,000 more people are in work than in 2010, unemployment is down by 38,000 since 2010.

The government has also reported that almost 5,700 have gained jobs through the Regional Growth Fund and Enterprise Zones

The government also stated that:

• More than 226,000 apprenticeships have been created since 2010 – the third highest in the country and 60,000 more than London
• The value of orders in the region for construction/infrastructure in the first quarter of 2014 totalled £259 million
• Government has invested £560 million in the Northern Hub, which is due to be completed by 2019
• £270 million has been given to support businesses through the Regional Growth Fund, supporting 64,000 jobs
• £290 million committed to electrify the TransPennine railway, with work starting last year
• Govt is contributing £175.5 million to the Leeds Trolleybus scheme
• £15.8 million invested in the South Yorkshire rapid bus scheme

Nationally, GDP grew by 0.8% in the second quarter of 2014, and the UK economy is now 0.2% above its pre-crisis peak in Q1 2008, after the recession shrank the economy by 7.2%.

Quarterly growth was driven mainly by the service sector (1.0%) and manufacturing (which was weaker at 0.2%). These two sectors combined make up 88% of the UK economy.

In comparison to the same quarter a year ago, each of the main sectors grew by more than 3%. This is the first time this has happened in 14 years (2000, Q1).

Construction has increased 4.2% on a year ago compared to 3.3% for services and manufacturing is up 3.3% on a year ago, same as services.

Chancellor George Osborne said: “Thanks to the hard work of the British people, today we reach a major milestone in our long term economic plan.

“But there is still a long way to go – the Great Recession was one of the deepest of any major economy and cost Britain six years.

“Now we owe it to hardworking taxpayers not to repeat the mistakes of the past and instead to continue with the plan that is delivering economic security and a brighter future for all.”

Bill Brown, chairman of Batley-based Angloco, which manufactures firefighting vehicles and equipment and has had recent success in Africa: “In the past two decades years the business has seen a year-on-year growth in its pre-tax profit, and in last financial year we once again achieved record sales of over £18 million.

“We are continuing to strengthen our team and so far this year we have recruited an additional four members into our management team and we shall shortly appoint an experienced executive to manage our export activities.”

Dr Stewart Davies, CEO of Wetherby-based Augean plc, a national waste management company specialising in hazardous materials: “Having recently announced a positive trading update which showed a 6% increase in Group revenues, Augean is in a stronger position now than at any point during the past five years.

“We are continuing to recruit across all our businesses to support our significant pipeline in our key markets notably within nuclear decommissioning, North Sea oil and gas and ash from Energy from Waste incinerators.”

Gordon Millward, South and East Yorkshire regional chairman of the FSB said: “The FSB has long highlighted the importance of the small business sector in the fight to improve productivity, create jobs and assist economic recovery.

“A report from the Institute for Public Policy Research released earlier this year found that small businesses were responsible for creating four in five private sector jobs between 2010 and 2013.

“New data from the FSB suggests five times as many small firms are planning to increase headcounts in the summer months compared to the second quarter of 2014, creating the right environment for business growth and delivering a further boost to economic recovery. The FSB is pleased to see this job-creating potential already making a positive impact on GDP.

“In addition, investment intentions remain strong for FSB members. This quarter, one in four firms expects to increase capital investment over the next 12 months, well up from the same period in 2013.

“The FSB believes business investment helps to boost productivity, which in turn feeds through into higher wages and living standards.

Sandy Needham, chief executive of West & North Yorkshire Chamber of Commerce, said: “Our latest Quarterly Economic Survey, released on July 8, highlighted growing confidence, which in parts of our region is at historically high levels.

“Companies reported increases in sales, both home and abroad, increasing investment intentions and more recruitment activity in the last three months which is all welcome news.

“However, there is still slack in the system with many companies yet to reach maximum output; companies also reported increasing concerns over inflation fears and skills shortages. Despite this we are in a much better place than we were only twelve months ago.”

This was posted in Bdaily's Members' News section by Clare Burnett .