Economic growth in Leeds set to outpace rest of Yorkshire between 2024 and 2027, says EY report

Yorkshire and the Humber is forecast to see annual average growth of 1.7 per cent per year over the same period, while the UK overall is expected to see 1.9 per cent growth, the survey concluded.

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Leeds is also projected to see employment grow by 1.2 per cent per year between 2024 and 2027, outpacing both the UK (1.1 per cent) and regional (1 per cent) averages. By 2027, GVA in Leeds' local economy is expected to be more than £1.8bn larger than in 2023.

Meanwhile, Doncaster, Wakefield and West Yorkshire Combined Authority are expected to have the joint-second fastest-growing economies across the region from 2024 to 2027, with each projected to see annual average GVA growth of 1.8 per cent over the period. The area covered by West Yorkshire Combined Authority is expected to see 1.1 per cent annual growth in employment, in line with the national rate, while Doncaster’s (1 per cent) and Wakefield’s (1 per cent) annual employment growth rates are expected to keep pace with the average across Yorkshire and the Humber.

Stephen Church, EY’s North Market Leader, said: “The North is home to fantastic towns and cities, along with ambitious businesses and an abundance of talent. This means that the region will be well-placed to feel and contribute to the benefits of the UK’s return to economic growth over the next few years. Major cities including Newcastle, Leeds and Liverpool are once again expected to be a driving force for economic growth in the North and across the UK. Meanwhile, Manchester is poised to maintain its status as an economic powerhouse, fuelled in part by its flourishing tech sector.

“Nevertheless, it is important that locations across the North utilise their unique strengths to drive growth. There are still a significant number of places in the North expected to trail quite considerably behind national and regional averages both in terms of GVA and employment, highlighting room for improvement.

“Going forward, it is critical that the public and private sectors collaborate to maximise opportunities. Leaders and businesses in the North should prioritise building skills and capabilities that will be in demand across high-growth sectors, while making the most of our region’s fundamental strengths such as our industrial prowess in the North East and Yorkshire, and our technology expertise in the North West. The high levels of economic inactivity in the North West and North East must also be addressed and policymakers should consider what sort of incentives and programmes can encourage people back into work.”

Elsewhere in the region, York, Sheffield and Bradford are expected to keep pace with Yorkshire and the Humber’s annual average GVA growth (1.7 per cent). However, York and Sheffield are also forecast to outpace the region’s employment growth, with each expected to see 1.1 per cent growth per year from 2024-2027 – in line with the national rate.