Growth in the North
Posted on Thursday, January 10, 2019 by Venn Group — No comments
Following the industrial revolution, the north of England has proven to be a critical part of the overall economic growth of the UK. While London remains the central point for business in the country, the scale of growth of the North’s offering is on the rise.
According to our Director for the North West and North East & Yorkshire, Ross Gilder:
“There is a major push for the percentage of GDP to be spread further than the South East and London.”
In 2017, the Yorkshire Post corroborated this, reporting that the Leeds economy was growing at a faster pace than London. Manchester is also working towards de-centralising the UK market, with gross value added growth predictions of 45% between 2016 and 2036 according to Recruitment Entrepreneur.
One of the main reasons for these steep levels of growth is the decision of more and more companies to set up headquarters outside of London. Ross notes the North is a very appealing option:
“There are more companies looking to set up HQ's in the north due to the lower commercial property costs, lower living costs for staff and corporation tax benefits.”
A notable example of this can be seen in the broadcasting and media sector, with Channel 4 moving headquarters and the BBC moving key departments to Leeds and Manchester respectively.
Additionally, with operating costs up to 40% lower than the capital in Manchester, there is the opportunity for companies to take advantage of profitable growth whilst still allowing for margin for error. This is crucial for start-up businesses, fostering an entrepreneurial spirit that is equally as attractive to top talent looking for work. In fact, according to Recruitment Entrepreneur, between 2015 and 2020 the number of job openings in Manchester was set to exceed those in global capitals such as Tokyo, Berlin and Paris. As this increase in opportunities draws more professionals to the North, population levels in these cities subsequently rises. This has a direct impact on the cost of property:
“House prices are rising faster than most parts of the country, due to the demand outstripping supply.”
Finally, there is planned development around infrastructure in the region. This is part of the government’s Northern Powerhouse strategy, aimed at addressing and correcting barriers to productivity in the region. For example, it was decided that £13 billion would be invested into transport in the North. This of course included the plans to build HS2, which is due to run its first trains in 2026. Fast and effective transport enables companies making the move to the North to be well connected to other areas, expanding the potential for business.
To conclude, it certainly looks like the North will continue to build on its successes:
“Economic growth in the North is on an upward trajectory and this will in turn ensure more career and job opportunities across the region.”
If you are a business looking to add to your workforce on a permanent or temporary basis, or if you are looking for an exciting new opportunity, then please do not hesitate to get in touch with our regional offices. Click here to see our contact details.