Leeds hits rich list but leaves region divided

EVERY region in Britain is more prosperous than last year with Leeds ranking as one of the most affluent cities in the country, although Yorkshire is languishing as one of the poorest parts of the nation, a new report shows.
Leeds came fifth in the list of the nation's most affluent citiesLeeds came fifth in the list of the nation's most affluent cities
Leeds came fifth in the list of the nation's most affluent cities

Leeds came fifth in the list of the nation’s most affluent cities, the first in the North, and emerging as a challenger to London and the South-East for affluence.

It is also a “prosperity” hotspot and an increasingly attractive place to live and work, according to the Barclays’ Prosperity Map.

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Cities outside of London and the South-East also performed strongly on entrepreneurial activity too, with Manchester, Cardiff and Sheffield all seeing some of the largest increases in SME turnover at 15 per cent, 12 per cent and 11 per cent respectively – a strong indicator of growing prosperity in these areas.

But Yorkshire ranked close to the bottom in the regional figures - 11th out of 12 areas and just above the North-East as the least prosperous area in the UK.

The lender’s report calculates regional scores based on an array of factors such as gross domestic product (GDP), house prices, charitable giving, working hours and average house prices.

While Yorkshire does not do well in general, wealth, spending and earnings did rise across the country overall in the 12 months to April 2016 and jobless rates dropped, the map shows.

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This more upbeat news comes despite economic uncertainty sparked by China’s economic slowdown, stock market turmoil and the Brexit vote.

Akshaya Bhargava, the chief executive of wealth, entrepreneurs and business banking at Barclays, said: “It is particularly reassuring to see that there is strong activity throughout the whole of the UK.

“As we look at the future of global trade and inward investment post-Brexit it is the success of our entrepreneurs that will help drive future prosperity - it is essential that business leaders and policy makers continue to nurture these growth areas in order to ensure that these trends continue.

“The research shows that not only is the UK still ‘open for business’, it sends a clear message that all parts of the UK are sharing in, and contributing to its role as a driver of global prosperity.”

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But Paul Swinney, a principal economist at the Centre for Cities think tank, said it was important to remember that there was still some way to go to ensure that everyone in the UK could enjoy equal levels of prosperity.

He said: “A large part of this will be investment in skills, particularly in areas which are still recovering from the decline in traditional industries.

“The most vibrant places are those which have high-skilled workforces, and which have focused on supporting firms and employment in the knowledge-based service sectors.

“By making these issues a priority, regions across the UK can start attract more of the industries and jobs which offer the best prospects of long-term growth and prosperity.”

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The leader of Hull Council, Coun Stephen Brady, added there had been an unprecedented amount of investment ahead of the City of Culture event next year, but it was important that the funding continues.

He said: “We have waited a very long time for this to occur. It has taken a lot of effort and we need that sustained on a year by year basis to create conditions for better jobs and better salaries.“