Leeds to be fastest growing economy in Yorkshire - with forecast £1.5bn boost by 2026

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 is expected to see 2.1 per cent growth.

That will still represent a bounceback on expected GVA performance this year, which is forecast to fall by 1 per cent against a national average of -0.6 per cent.

The new forecast projects that Leeds will add £1.5bn to its economy by 2026, compared with 2022, bolstered by the city’s employment growth, which is expected to be 1.4 per cent per year on average from 2024 to 2026 – faster than both the national (1.3 per cent) and regional (1.1 per cent) rates.

Meanwhile, Sheffield and Harrogate are expected to have the joint-second fastest-growing economies across the region from 2024 to 2026, with both projected to see annual average growth of 1.9 per cent.

York joins Leeds, Sheffield and Harrogate in being expected to outpace regional economic growth from 2024 to 2026, with an annual average of 1.8 per cent growth forecast.

Stephen Church, EY’s North Market Leader, said: “The North is home to many of the UK’s most dynamic and innovative businesses and, while the next 12 months will be economically challenging, there are areas across the region where we can expect to see encouraging growth over the next few years. The North’s cities are set to be particularly strong performers.

“However, progress is about the whole of our region, not just our bigger cities. And while several towns and cities are expected to see better economic and employment growth than many other parts of the country, too many places are still expected to trail behind.

“In order to spread growth, not just throughout the country, but throughout regions too, it is critical that the public and private sectors work together to combine their expertise, strengths, and capabilities. The North needs both working in tandem to succeed.

“Looking ahead, the regions across the North need their own clear strategies for growth, which reflect each region’s own strengths and unique attributes.

"Getting the right sector mix is key, and investment in high-value sectors and skills can help build a sustainable future – not just for the North, but for the whole country too.”