Leeds’ growth set to ‘outpace’ UK average

Leeds is poised to see its economic growth surpass the UK average between 2025 and 2028, according to professional services firm EY’s latest Regional Economic Forecast. 

The city’s Gross Value Added (GVA) is forecast to grow by 1.7 per cent annually, outpacing both the UK (1.6 per cent) and Yorkshire and the Humber (1.5 per cent).

The region’s strong performance is partly driven by anticipated employment growth, with Leeds expected to see a 0.8 per cent annual increase in jobs over the same period, again outpacing the national average. 

By 2028, the city’s economy is projected to be more than £2.5 billion larger than in 2024.

The report also notes that manufacturing will remain a key contributor to the region’s economy, while the fastest-growing sectors will be information and communication technology, alongside the growing renewable energy industry. 

North Yorkshire is also expected to outperform national averages, with an anticipated 1.7 per cent GVA growth and 0.8 per cent annual employment growth.

Tim West, Leeds office managing partner at EY, said: “Leeds’ economy is expected to outpace the overall UK growth rate over the next three years, which is a clear reflection of the city’s dynamic and resilient business community. 

“Leeds’ concentration of knowledge-based sectors is expected to be a major asset in the coming years, with the city’s local tech and professional services sectors forecast to contribute significant economic growth and job opportunities. 

“North Yorkshire is also expected to fare slightly better than the overall national averages for both economic and employment growth. 

“This will be driven in part by the region’s growing technology sector, which is predicted to continue its upward trajectory, as well as increased activity in construction.”

Despite the overall positive outlook, some areas of Yorkshire and the Humber are expected to experience slower growth in both GVA and employment. 

Sheffield, Wakefield and the West Yorkshire Combined Authority are forecast to see steady growth, with annual GVA rising by 1.5 per cent and employment growth slightly below the national average. 

In contrast, Barnsley, Doncaster, York and Bradford are projected to see more modest GVA growth of around 1.3-1.4 per cent, with slower employment growth, particularly in Kingston-upon-Hull, which is expected to experience just 0.2 per cent annual growth. 

Meanwhile, Kirklees and Rotherham are forecast to have the slowest growth, with GVA rising by only 1.2 per cent and 1.1 per cent, respectively, and minimal job market expansion.

Tim added: “The story across the broader Yorkshire and the Humber region is more mixed. 

“Manufacturing has traditionally played a key role in the region, but businesses in the sector are facing elevated energy and labour costs, which is impacting margins. 

“Looking ahead, Yorkshire and the Humber’s policymakers and businesses should continue prioritising the skills and capabilities needed to fuel the region’s high-growth sectors. 

“Capitalising upon the region’s unique industrial strengths, as well as taking advantage of opportunities linked to emerging tech and the energy transition will also be key to ensuring Yorkshire and the Humber is an attractive destination for inward investment going forward.”

You can download EY’s Regional Economic Forecast here.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →