Economic growth fell in Sheffield, says report

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

Thursday, 14th April 2016, 6:00 am
Can we please use this image of Paul Firth of Irwin Mitchell, with Niall Baker, Chief Executive of Irwin Mitchell Business Legal Services to go with story 2 on page 4 of Business Tuesday.

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.

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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, Irwin Mitchell’s regional managing partner, said the fall in growth could be in part due to cuts in the steel industry.

He added: “Manufacturing forms an important section of the Sheffield and Yorkshire economy. œWhile steel no longer dominates, the well-documented issues within the UK’s steel industry has been one factor weighing on employment across the region, much as it has done in other areas of the UK. In addition to private sector job cuts, Sheffield has also increasingly seen public sector employment come under pressure and further job cuts in the City Council have already been announced.“