Member Article

GVA contribution of North East tech sector double that of national average

The future’s looking bright for the North East Tech Sector after the ONS confirmed that it has enjoyed a rapid leap in its GVA contribution.

GVA contribution is currently double the national average according to the new report, which revealed that the contribution of the North East Information and Communications sector grew by 14.9%. Proof that the region has the fastest growing Tech economy in the UK.

Elsewhere, at the regional level, in 2015 London had the highest GVA per head at £43,629 while Wales had the lowest at £18,002.

In reaction to the ONS’ findings, Digital Union’s Jim Mawdsley, said: “This huge leap in GVA contribution both reflects and underpins what we have been saying for a while now.

“Not only is the whole tech sector growing quicker in the North East but businesses and the people who work for them are more productive than in other regions. If I was looking to move a Tech company the North East would be top of my list.

“The news that the tech sector in the region is growing rapidly doesn’t really surprise me but to be doing so in terms of GVA at twice the National average and 4% ahead of the entire South East certainly does.

“We don’t boast enough about what we have here compared to other parts of the North let alone the UK and along with the obvious presence of Sage, we have other large organisations with significant bases here including Hewlett Packard, Accenture, and BT.

“We also have world-leading games company Ubisoft, the Leighton group and the large digital offices of the Department for Work and Pensions and HMRC.

“We also have fast-growing SMEs such as Zerolight, Orange Bus, Enigma Interactive and Waterstons as well as global leaders in User Interface and Experience such as Atom Hawk. And then there is fashion powerhouse End Clothing, a world leader in bespoke online retailing. This growth is set to continue.”

Meanwhile, the North West was found to be the fastest growing NUTS1 region in the UK in 2015 when looking at annual growth in total GVA (in millions of pounds).

Total GVA in the North West grew by 3.6% in 2015. East Midlands had the lowest rate of growth in total GVA at 1.8% in 2015.

Jim added: “I expect 2017 to show continuing signs and proof of growth. Both the North East LEPs have the Tech sector earmarked for support and if that support is given in the right areas then we will make even greater strides.”