East Yorkshire’s digital economy worth £7bn

THE DIGITAL sector contributed billions to Hull and the East Riding’s economies, and is growing twice as fast as the rest of the UK, according to a new report.

The report, commissioned by communications provider KC, found that it employs 57,000 people, nearly a quarter (22%) of the region.

Technology analysts Innovation Observatory found that the digital economy is worth £6.93bn a year, coming in at 24% of the total local economy.

They also found that the digital economy in the region grew by 5.5% in 2014. The UK total digital economy grew by 2.6%.

KC managing director Gary Young, who is also chairperson of the Humber Local Enterprise Partnership Digital Sector Group, said: “This research shows for the first time the huge impact of digital activity on the local economy.

“It also underlines the area’s credentials and advantages as a digital centre of excellence. Digital is a major opportunity for the region as a whole and for businesses across all sectors within it.”

The report was based on a broader definition of the digital economy “reflecting that digital activity is now a significant part of many businesses.” Defining organisations as contributing to the digital economy if they used the internet and connected technologies to trade or interact with consumers and other businesses.

KC commissioned the survey of 271 organisations as part of an investigation into the effect of its Lightstream fibre broadband network, the only network in the UK that can be described as “ultrafast” according to the firm.

Jonathan Leafe, managing director of Hull-based marketing agency Strawberry, said digital activity within his business had doubled every year for the past 10 years and now accounted for up to 80% of its output. Over the past year Strawberry has also moved 95% of its business systems into the cloud, enabled by KC’s Lightstream ultrafast broadband network.

“Fundamentally every business is a digital business or will have to be a digital business. If they aren’t, they won’t stay in business,” he said.