Workers in Sheffield contribute £30 an hour to economy, figures show

Data from the Office for National Statistics shows Sheffield had a gross value added of £30.26 per hour worked in 2018.

This was was an increase of 2 per cent on 2017, but means the area is below the UK average of £35.03 per hour.

Yorkshire and The Humber as a whole has an average GVA of £29.70, making it the second-least productive region in Britain. GVA is the final value of the goods and services produced in an area and is used to measure contribution to the national economy.

Sheffield lags behind York, where workers had a gross value added of £35.37 per hour worked in the same time period, along with many areas in the capital.

The figures also suggest the west London borough of Hounslow is more than three times as productive for the economy as the Welsh county of Powys.

Paul Swinney, director of policy and research at urban policy research unit Centre for Cities, said: “The productivity output gap between northern and southern cities is one of the biggest challenges facing the British economy.

“While cities and large towns in south-eastern England are among the most productive places in Europe, those in the north lag far behind and, as a result, it takes someone in Wigan a full working week to produce what it takes someone in Westminster just two-and-a-half days.

“Addressing this disparity should be central to the Government’s levelling up agenda.

“Transport investment within big cities will be important, and so will spending on adult education to upskill the workforce.”

The ONS said that areas with high labour productivity will usually be home to a major manufacturing site or a large utility sector, and those with low productivity are typically more rural or isolated places.

A spokesman for the Department for Business, Energy and Industrial Strategy said: “This Government remains absolutely committed to the Northern Powerhouse and levelling up growth across the whole country to drive productivity, empower communities and rebalance opportunity.

“Alongside Local Industrial Strategies agreed with local business and civic leaders, we are committed to investing record levels in research and development throughout the UK and supporting local innovation through our £236 million Strength in Places fund.”