The Yorkshire advantage – driving regional growth
By Natalie Boswell, regional development director for Yorkshire at Lloyds
Yorkshire, renowned for its rich heritage, vibrant culture and stunning landscapes, is also a thriving hub for business.
In the Budget, the Chancellor announced single funding settlements for the West and South Yorkshire Combined Authorities, with the potential to provide more effective, long-term regional planning as a result. This approach could ensure greater financial certainty, more strategic investment and tailored spending to accelerate local priorities.
Our latest Business Barometer, which measures trading prospects and economic optimism across the UK, reveals growing confidence among businesses in Yorkshire. Nearly half (47%) of firms now feel more optimistic about their own prospects, a significant increase from 35% in September.
As Yorkshire’s economy gains momentum, the upcoming Business of Yorkshire Conference will focus on a key question – how can local businesses fuel long-term growth and secure the region’s future? Sustainability, skills and housing are bound to be central to the discussion.
Powering profit through sustainability
Sustainability is central to Yorkshire’s future, evident in the rapid growth of renewable energy, particularly offshore wind. With major North Sea wind farms like Dogger Bank – set to become the world’s largest when completed in 2026 – the region has developed a strong supply chain to support this vital sector.
Adopting robust sustainability strategies is key to driving growth, providing both environmental and economic benefits. By investing in renewables like solar panels and energy-efficient equipment, companies can reduce carbon emissions, lower operational costs and reinvest the savings into future expansion.
Take Sheffield-based aerospace manufacturer CW Fletcher. The business has installed more than 1,500 solar panels on its factory roof, achieving six-figure energy savings that it reinvested in advanced machinery to boost productivity, supported by a £688k asset finance package from our Clean Growth Finance Initiative (CGFI).
Clearly, for companies in Yorkshire, sustainability is a smart business strategy.
Supercharging skills
But no business strategy can succeed without skilled workers at its core.
True growth for SMEs requires a digitally skilled workforce that can maximise these tools, boosting productivity and efficiency. It’s promising that our latest Business Barometer shows more than a third (34%) of Yorkshire firms view investing in their team, including training and development, as a top growth driver.
The South Yorkshire Mayoral Combined Authority (SYMCA) is helping businesses turn their skills ambitions into action. With £3m from the Department for Education, SYMCA is expanding its Skills Bootcamps in the region, including the launch of Green & Digital Skills Bootcamps in South Yorkshire back in July. These flexible 16-week courses are designed for individuals aged 19 and older to develop sector-specific skills, with a guaranteed interview with a local employer upon completion.
Housing helps
In addition to a skilled workforce, the government has made it clear that sustainable housing is part of the foundation on which economic growth is built.
Lloyds is committed to supporting SME developers with a range of financial and sustainability initiatives, including our Sustainability Finance Framework, which includes discounted lending to SMEs acquiring or refinancing energy-efficient properties through the Buildings Transition Loan.
We have also partnered with Barratt Developments PLC and Homes England to form the MADE Partnership, a £150m venture focusing on developing large sites to deliver thousands of needed homes nationwide. And more recently we have partnered with the National Wealth Fund, to deliver £500m of lending to the social housing market to accelerate retrofitting in the UK.
By prioritising sustainability, skills and housing, local businesses are not only securing their future but also strengthening communities and driving long-term growth across the region. These key themes will form the foundation of this year’s Business of Yorkshire Conference, where industry leaders will come together to collaborate, exchange ideas and help shape the future of Yorkshire’s economy.
