Bristol outperforming other cities as economy rebounds, major new report shows

January 27, 2014
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Bristol is today confirmed as one of the strongest performing major English cities outside London, in a new national report.

The Cities Outlook 2014 by urban think tank Centre for Cities shows Bristol performing better than most cities on a range of economic indicators, and the only city to consistently outperform the national average. 

The report also makes the case for further financial devolution from the country’s centre to its cities, a cause which local public sector and business leaders are championing.

The report follows research released last week by international property agents Jones Lang LaSalle which suggested that Bristol will outperform London over the next four to five years as its tech and creative media sectors grow.

Mayor of Bristol George Ferguson said: “I have great respect for Centres for Cities and very much agree with their view that the English cities need more in the way of devolved powers and control over funding to ensure we make the most of our local strengths.
 
“Bristol is currently the only major city in England outside the South East to make a positive contribution to the UK economy. We are currently performing well and the future is bright for the private sector, not least with the gathering pace within the Temple Quarter Enterprise Zone which is attracting national and international attention.”

The report suggests the Bristol city region (including parts of South Gloucestershire) suffered from 13,900 reported job losses in the private sector and 500 in the public sector between 2010 and 2012 – figures disputed by local politicians and economic development organisations.

They say these appear to be at odds with competing statistics from the Office of National Statistics, whose Annual Population Survey data showed an overall increase in jobs in the private sector of around 3,400 for the same time period. 

Meanwhile the numbers of people claiming Jobseekers’ Allowance rose by just under 3,000 during that time and has since dropped by over 4,000.

Paul Wilson, chief executive of the West of England Local Enterprise Partnership (LEP), said: “The figures used by the excellent Centre for Cities do not conform to the wider data set that we see.”

He added: “Devolving powers, finances and responsibilities to city regions is the best way for UK plc to realise its full potential. Our city region has a terrific investment grade and competes internationally.”

And James Durie, executive director of Business West, added: “A lot has changed since 2011 when the jobs data used by Centre for Cities was gathered and their findings don’t quite match the picture we have of the Bristol region.

“There’s no doubt it has been a challenging time for businesses all over the country, but we have weathered the storm well and don’t recognise the reported scale of job losses. What we do recognise is the strong overall economic performance of the city, which is one of the country’s best.”

The Centre for Cities has been quick to point to the region’s strengths in spite of the reported jobs data.

Centre for Cities Chief Executive Alexandra Jones said: “Of course Bristol should be mindful of, and look to respond to, these recent changes in private sector jobs, but we must also look to longer-term trends which show that the city is one of our strongest performing and most resilient outside of London. 

“Bristol has a track record of performing well in many of the issues we know matter for economic growth – wages, new business starts, unemployment and skills to name but a few.  Because of this underlying strength, Bristol is well placed to respond to what may be short-term challenges for the city’s labour market.”

The report underlines that the Bristol city region is the strongest performing major English economy outside London on a range of other indicators, and the only city to consistently outperform the national average. 

These areas include:              

  • Employment rate: 73%, July 2012 – June 2013
    (UK average 71%. Highest of all Core Cities and London)
  • Business start-ups per 10,000 population in 2012: 44
    (UK average 42. Joint highest outside London)
  • Residents with high level qualifications in 2012 – 39%
    (UK average 34%. Second highest outside London)
  • Residents with no formal qualifications in 2012 – 8%
    (UK average 10%. Joint lowest rate including London)

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