Output grows faster than capital – report

BIRMINGHAM has outperformed London in economic growth in the last three years, a new economic study has revealed – but growth will slow within a decade.

The city is also one of the top ten job creators in the country, according to the UK Powerhouse report, published by law firm Irwin Mitchell and the Centre for Business & Economic research.

It provides an estimate of gross value added (GVA) and job creation within 45 of the UK’s largest cities 12 months ahead of the Government’s official figures.

The report revealed that headcount within Birmingham stood at 547,759 – 1.4 per cent higher in Q1 2017 than it was in the same period of 2016.

Coventry was one place ahead with annual growth of 1.5 per cent but Wolverhampton was at only 1.1 per cent.

Although Birmingham was said to have a relatively low exposure to international markets – something which had boosted many other city economies during Q1 – UK Powerhouse attributed Birmingham’s steady GVA growth of 2.1 per cent to strong output within retail, professional services, construction and manufacturing.

The report revealed that over the last three years the economy in Birmingham had grown at 8.8 per cent – faster than London at 7.1 per cent and Greater Manchester at 7.4 per cent.

Chris Rawstron, partner in the Birmingham office of Irwin Mitchell, said: “The latest results paint a mixed picture for Birmingham because, although it has performed relatively well in the last three years and had a steady start to the year in terms of employment growth, our report predicts that growth over the next decade will be slower compared to a lot of other cities, particularly those in the South of England.

“We are only at the start of the devolution journey in Birmingham and it is now vital the new mayor draws on the expertise and strength that exits within the city, while also tackling issues relating to skills and congestion which have such a big impact on our productivity.”

UK Powerhouse also examined the impact of the financial services sector on city economies.

Birmingham performed strongly in terms of employment in the Financial Powerhouse league table, with the report stating that the city had added 5,500 new jobs in the last three years, taking the total number employed in the sector to 97,000.

It added that the city’s influence within the sector will be boosted by HSBC’s decision to locate the its UK headquarters in Birmingham rather than London.

Our report predicts that growth over the next decade will be slower compared to a lot of other cities Irwin Mitchell