Partner Article

Entrepreneurship and business growth boosts prosperity in Yorkshire giving reason for optimism

By Martin Cuthbert, Regional Director, Yorkshire and Humberside, Barclays Wealth & Investment Management

The UK’s economic growth and prosperity is often closely linked with the performance of London, however, it’s important not to forget about the hubs of prosperity that are emerging elsewhere across the country. This is particularly true in Yorkshire and Humberside, where increasing levels of business growth and entrepreneurial activity show indications that the region is beginning to thrive.

Our first Barclays UK Prosperity Map uses a unique ‘Prosperity Index Score’ for each UK region taking into account factors including number of millionaires, percentage of households giving to charity, entrepreneurial activity and exam scores. The research reveals that Yorkshire is rapidly becoming more prosperous. The region has seen a 33% increase in the number of millionaires since 2010, with 28,000 of these individuals now calling Yorkshire their home. This demonstrates that this region is increasingly becoming a more attractive area to live and do business in.

It is encouraging to see that prosperity is being driven by cities such as Leeds, which is the sixth most prosperous city in the UK. The area enjoys the fourth highest GDP per capita of any UK city, behind only London, Reading and Bristol. Average house prices in Leeds also stand at £144,600 and are above that of other cities in the North, such as Manchester, Liverpool and Newcastle. Yorkshire also has relatively strong business survival rates which gives confidence that entrepreneurship in the wider region may help to boost business growth in the future.

These impressive figures indicate that although London’s growth continues to remain a key component in driving the levels of prosperity in the UK, it is not just the capital that is responsible for wealth creation. The Barclays UK Prosperity Map results should not only give Yorkshire a real reason to feel optimistic and positive about the future stability of this region, but it should allow them to address the areas of growth that need improvement.

For example the research states that Yorkshire and Humberside still has the second highest unemployment rate in the UK at 7.4%, only behind the North East. If this state of unemployment can be addressed, using the boost of business survival rates for example to create more employment opportunities, then Yorkshire will have an even greater chance of continuing to prosper in the future.

More broadly, the Barclays research revealed that every UK region is becoming more affluent thanks to booming house prices and returns in equity markets up to June 2015, in addition to higher wages and employment rates. House price increases and equity market returns have contributed to a 41% increase in numbers of millionaires since 2010. Longer-term, growth in millionaires is expected to return to more normal levels, with a 9% increase in the UK expected by 2025, in-line with GDP growth.

Business and policy-makers must come together to ensure that we continue to support and nurture entrepreneurship, education and business growth in Yorkshire, so that the region can continue to grow and prosper, creating opportunities not only for the region itself, but for the UK as a whole.

This was posted in Bdaily's Members' News section by Lizzie Jones .