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Key SME clusters in London to help unlock additional £16bn economic growth

Startups and SMEs in London are to be a key driver of economic growth and job creation in the next five years according to figures released by npower.

The npower Business and Capital Economics report has identified UK SME hotspots that are set to generate an additional £16bn annually for the economy and create 200,000 jobs, with the capital leading the way.

Both the City of London and the borough of Westminster feature in the report as areas with significant potential for SME growth based on factors such as workforce skills, property costs, government policy and other factors.

Bristol, Leeds, Birmingham and Brighton also feature highly on the list due to their favourable property prices and fertile SME industries.

In particular, the City of London’s strong economic growth outlook and its access to a highly skilled workforce is set to see it leading the SME charge over the next five years with the report predicting that the square mile will shrug off Brexit worries and provide an additional 36,000 UK jobs on its own.

With SMEs currently employing 16.8m across the UK, Philip Scholes, Head of npower Business, predicts that the sector is only going to become more central to the country’s economic growth prospects.

He commented: “SMEs are critical for future economic growth in the UK. These businesses have been the backbone of the country in recent years and, as this research shows, there is significant opportunity for them to grow further over the next few years.”

In light of the report, Dale Murray, CBE & Board Advisor at the Centre for Entrepreneurs, said that it was vital that government recognise the vital contribution of startups, SMEs and entrepreneurs to the UK’s economy and job market.

He added: “Growth of SMEs will be crucial to the British economy over the next five years as they create tens of thousands of jobs. Policy makers must recognise how vital business rates, living conditions and workforce skills are to attracting SMEs and do everything they can to support them.”

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