Yorkshire growth rates fall, costing the economy £1bn

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Economic growth in Yorkshire’s largest cities fell in the final quarter of 2015, says a new report.

Irwin Mitchell’s UK Powerhouse report shows growth in Sheffield fell from 1.7pc in the 12 months to October to 1.3pc in the 12 months to the end of 2015.

Sheffield was also the only city which experienced a fall in the number of people in work in the same period.

The rate of growth in Leeds’ economy fell from two per cent in the year to quarter three to 1.7 per cent in the year to quarter four. However, the value of the goods and services produced reached £20billion for the first time.

Hull’s economy grew at the same rate as that of Leeds while Bradford’s growth rate fell from 1.6pc to 1.2pc.

The report, produced with the Centre for Economic and Business Research, also provides an estimate of ‘Gross Value Added’ - the value of goods and services produced in 38 of the UK’s largest cities.

It lowered forecasts for GVA in 2016 for Yorkshire as a whole. Three months ago, GVA in the region was expected to reach £106.5bn by the end of this year, but this has been revised downwards to £105.5bn.

Paul Firth, IM’s regional managing partner, said: “Manufacturing forms an important section of the Sheffield and Yorkshire economy. While steel no longer dominates, the well-documented issue within the UK’s steel industry has been one factor weighing on employment across the Sheffield region. Public sector employment has come under pressure and further job cuts in the city council have already been announced.”