Issue date
06 Jul 2015

6 July 2015

New research published today (Monday) by the TUC has found that London is outperforming other parts of the UK in economic and jobs growth, while the economic recovery is weakest in the North West and Northern Ireland.

Using the most up-to-date figures available, the research analyses regional and national contributions to the UK’s economic and jobs growth since 2010.

From 2010 to 2013, the London economy grew more than one and a half times as fast (163 per cent) as the rate of the UK economy as a whole. By comparison, growth was only around half the national rate in Northern Ireland (49 per cent) and the North West (51 per cent).

From 2010 to 2014, jobs growth in London (11.5 per cent) was twice as fast as the UK as a whole (5.1 per cent), three times as fast the West Midlands (3.7 per cent) and South West (3.6 per cent), four times as fast as the North East (2.9 per cent) and Wales (2.7 per cent), and six times as fast as the North West (1.8 per cent).

In 2013 economic activity in London accounted for 22 per cent of the value of the entire UK economy, up from 21 per cent in 2010 and 19 per cent in 1997. In 2014 London accounted for 14.2 per cent of all UK jobs, compared to 13.5 per cent in 2010 and 12.4 per cent in 1997.

TUC General Secretary Frances O’Grady said:

“We need a recovery that works for the whole of the UK, but cuts to infrastructure and services have hit places that are most in need of investment. We now have an unbalanced recovery that is too weak outside of London, too dependent on families getting into debt, and too focused on jobs in low-paid service industries.

“UK regions won’t become powerhouses of growth and job creation unless they are powered-up by investment in skills, infrastructure and decent public services – but the Chancellor’s extreme cuts will mean pulling the plug.

“We need a better economic plan that prioritises balanced growth across the UK by targeting investment to communities that are most in need of modern infrastructure and more decent jobs.”

NOTES TO EDITORS:

Rate of growth of UK nations and regions relative to London, 2010-2013

 

Rate of growth %

Growth relative to whole of UK %

Northern Ireland

4.4

49

North West

4.5

51

South West

6

67

Yorkshire & The Humber

6.4

72

North East

7

79

East of England

7.4

83

East Midlands

8

90

Scotland

8.1

91

United Kingdom

8.9

100

Wales

9.5

107

South East

9.8

110

West Midlands

10

112

London

14.5

163

Jobs growth for UK nations and regions, 2010-2014

 

Increase, 2010-2014

% change

North West

58,000

1.8

Wales

36,000

2.7

North East

33,000

2.9

South West

90,000

3.6

West Midlands

93,000

3.7

South East

189,000

4.5

Northern Ireland

36,000

4.6

UK

1,461,000

5.1

Yorkshire & The Humber

121,000

5.1

East Midlands

110,000

5.2

Scotland

128,000

5.2

East of England

163,000

5.9

London

440,000

11.5

Source: Office for National Statistics

- Regional and national economic growth comparisons are made using gross value added (GVA), which measures the contribution to the UK economy of its different elements and can be broken down in various ways, including regionally and by industrial sector. More information can be found at http://www.ons.gov.uk/ons/guide-method/method-quality/specific/economy/national-accounts/gva/index.html

- Despite London’s relatively positive performance, it is important that very wide inequalities within the region are not overlooked. For example, it should be remembered that several London boroughs remain amongst the worst in the UK for child poverty rates. The analysis shows that we need stronger, broader growth across the whole of the UK, which in turn will further support performance in London because of its economic links to other regions.

- All TUC press releases can be found at www.tuc.org.uk

- Follow the TUC on Twitter: @tucnews

Contacts:

Media enquiries:
Tim Nichols  T: 020 7467 1288  M: 07876 452902  E: [email protected]
Alex Rossiter  T: 020 7467 1285  M: 07887 572130  E: [email protected]
Clare Santry  T: 020 7467 1372  M: 07717 531150  E: [email protected]
Elly Gibson (Mon to Wed)  T: 020 7467 1337  M: 07900 910624  E: [email protected]
Kay Atwal (Thur and Fri)  T: 020 7467 1385  M: 07941 547469  E: [email protected]