THE economic gap between Yorkshire and London is set to widen by £50 billion in the next decade, even though cities such as Bradford are expected to grow by more than ten per cent, a new report claims.
Law firm Irwin Mitchell’s latest UK Powerhouse report, produced with the Centre for Economic and Business Research, shows that while Bradford’s economy shrank by 0.2 per cent in the second quarter of this year, the district’s growth is predicted to be 10.3 per cent by 2026.
The report predicts that Yorkshire’s city economies will continue to be outpaced by those in the South East.
It predicts London’s economy will expand by 16.3 per cent by 2026 with fast growth cities in the South such as Milton Keynes and Cambridge will grow by 22 per cent.
Meanwhile, it expects the economy of Leeds, Sheffield, Hull and Bradford to see growth by the end of the next decade of 13.1 per cent, 11.6 per cent, 11.1 per cent, 10.3 per cent respectively.
The study predicts that the gap between London and the Yorkshire region will grow by £49.9 billion between now and the second quarter of 2026.
Niall Baker, chief executive at Irwin Mitchell’s business legal services division, has called on the Government to move the Northern Powerhouse project forward following mixed signals .
He said: “Despite the appointment of Andrew Percy to his new role (as Northern Powerhouse minister), there has been much discussion about whether George Osborne’s Northern Powerhouse project will continue to receive the support from the new PM.
“There has been a significant amount of political uncertainty over the last couple of months so it is pleasing to see that there has been a recovery of growth rates in the Yorkshire region.
“What is perhaps more significant however is the lack of progress is tackling the divide between London and the North.
“The Northern Powerhouse initiative has now had the backing of Theresa May and it is vital that the Government refocuses its efforts in this area and ensures economic prosperity is shared fairly.”
Meanwhile, 67 per cent of owner managed businesses in Yorkshire expect to retain access to the EU single market after Brexit, findings by Bank of Cyprus UK show.
Firms are confident about their post-Brexit prospects. with 59 per cent expecting revenues to increase in the next 12 months.
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