Southampton’s economic stock is set to see a considerable rise in the next 10 years, a new report released by law firm Irwin Mitchell forecasts. The UK Powerhouse report, produced alongside the Centre for Business & Economic Research provides an estimate of GVA and annual job growth of 45 of the UK’s largest cities, 12 months ahead of the Government’s official figures.
The report also provides a 10-year projection on GVA and employment, with Southampton one of most promising cities in the UK for future economic growth. According to UK Powerhouse, it is forecast to see an increase of 18.6% by 2027.
It’s equally good news for another south coast city, Portsmouth, which is predicted to see an economic increase of 17.4%.
The report analysed how well Southampton performed in the 12 months to Q1 2017 and revealed that faced with political and economic uncertainty, the city’s economy grew by 2.1%. This represents a fall from the previous quarterly figure of 2.4%
Commenting on the current challenges facing businesses in the city, John Riddick, corporate partner at Irwin Mitchell in Southampton, said:
“It is a challenging time for many businesses and although many remain nervous as a result of the economic and political uncertainty, we are currently seeing a lot of organisations reviewing their strategic options and taking advantage of the acquisition opportunities that exist, particularly those which can bolster their domestic and international sales channels. We are also seeing some companies taking to opportunity to streamline their operations and disposing of non-core divisions.”
Jack Coy, economist at CEBR, said: “Despite the UK-level economic slowdown over the first quarter, it is good to see some bright sparks in local economies across the country. In particular, the best performing cities have benefitted from a combination of cutting-edge, productive industries and high-skilled workforces.”
The full UK Powerhouse report can be downloaded from www.irwinmitchell.com/ukpowerhouse
*GVA – the value of goods and services produced.