Berkshire: Economy second only to London, report shows
An economic report released by Thames Valley Berkshire LEP has reiterated the significant role of the Berkshire economy in contributing to national economic growth, now and in the future.
The main points are:
- The Berkshire economy remains strong
- Berkshire is ranked second only to London in terms of economic output and productivity
- Economic output and productivity growth rates between 2014 and 2015 were much stronger than between 2013 and 2014
- Five-year moving average growth rates suggest that growth in economic output and in productivity has been relatively stable since 2009
- Berkshire continues to perform well in terms of private-sector jobs and relatively well in terms of unemployment
- Berkshire performs less well in terms of the pace of housebuilding
New data published by the Office for National Statistics has highlighted that Berkshire is ranked second only to London in terms of economic output and productivity. It contributes over £35 billion Gross Value Added (GVA - the value of goods and services produced in an area), or £40,248 GVA per head, to the UK economy. And its GVA growth is ranked an impressive fourth out of 38 when compared with the other LEP areas in the country.
In addition, productivity growth rates between 2014 and 2015 were significantly higher than between 2013 and 2014, with Berkshire maintaining its leading position in relation to other LEP areas in England.
In terms of employment, private-sector employment has reached its highest level since 2011, with 88% of total employment coming from the private sector. The overall unemployment rate has fallen to just 3.6%.
The report highlights the value of the Berkshire economy to the UK – as a high-wage, high-skilled, competitive economy with excellent transport links to the UK’s hub airport, Heathrow. The LEP has long argued that its area “delivers national growth, locally”; the latest data and five-year moving average analysis reinforces this point, as well as demonstrating how Berkshire can contribute to the government’s Industrial Strategy, designed to build on the strengths of the UK to enable all parts of the country to succeed.
Peter Read, chairman of the LEP, commented: “These figures provide a timely reminder of the strength and stability of the Berkshire economy. The LEP has now sealed three Growth Deals with government, which will see £142m invested into Berkshire’s connectivity, an absolute priority for the local workforce. In these times of great change, Berkshire is well-positioned to continue to play a leading role in the UK’s future growth as the country prepares to forge new, global trade deals.”
