Fastest growing East Midlands city in 2016 revealed

Nottingham ended 2016 with the fastest growing city economy within the East Midlands after it recorded at 2.5% increase in output in the 12 months to Q4 2016, says a new report.

The UK Powerhouse report by Irwin Mitchell and the Centre for Business & Economic research (Cebr) provides an estimate of GVA and job creation within 38 of the UK’s largest cities 12 months ahead of the Government’s official figures.

The report, which is published this month, found that Nottingham moved up 10 places in the league table of the fastest growing cities after recording 2.5% annual growth.

Derby recorded 2.4% increase in output whilst Leicester’s economy expanded by just 2% in the 12 months to the end of 2016.

Nottingham also boosted its headcount with a 1.6% rise in employment levels, consolidating its top five position.

Nottingham is said in the report to benefit from its position as a retail hotspot and also the large number of people working in banking and management consultancy, which was boosted by a strong performance in the financial and business services sector across the UK.

It added that Nottingham’s vibrant city centre is helping fuel job creation and said that in the coming year, further employment opportunities in Nottingham will be created, for example, by Grosvenor Casino’s £3.4m revamp and IT firm Octavian’s expansion.

Derby’s performance was boosted by growth from the transport, storage and communication sector, which expanded by 1.8% quarterly. Outside of the service sector, Derby’s high export levels meant that it performed well as a result of a weaker pound.

The report said that Leicester’s economy was hit hardest as a result of a 2.1% contraction in the textiles industry.

Looking further ahead, the report analysed the impact of the Government’s recently launched industrial strategy. It found that the Nottingham was on target to grow by 16.4% over the next decade. Derby is expected to grow at a similar rate (16%) whilst Leicester is expected to see GVA grow by 14.3% in the next 10 years.

Vicky Brackett, CEO of Irwin Mitchell’s Business Legal Services division, said: “The Government’s regional investments in initiatives such as the Midlands Engine will certainly boost the region, but these investments as they stand are not likely to narrow the gap between the North and South.

“The Midlands is receiving investment, but so too are London and the South East, especially from abroad. The new industrial strategy does not rebalance this fact.

“Both institutions and skills need to be focuses for this industrial strategy. Creating research institutions such as the one in Manchester is a good start, but there is some way to go. There are promising signs from the Midlands Engine, such as the space tech hub in Leicester which was recently confirmed, but these are more likely to be a small local boosts than total game-changers.”

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