Yorkshire millionaires soar by one-third
Yorkshire low on prosperity index
YORKSHIRE HAS 30 per cent more millionaires than five years ago, new figures have revealed.
There are now 28,000 residents in the region worth a seven-figure sum up from 21,000 in 2010, according to this year’s upbeat prosperity map by Barclays,
And the equivalent of one in 67 Brits is also a millionaire.
Although this is a slight dip in comparison to 2015, the longerterm trend paints a better picture, with the number of millionaires increasing nationally by 34 per cent since 2010. Even without London and the South-East, the rest of the UK has shown an increase of 85,000 additional millionaires since 2010.
Overall, every region in Britain is more prosperous than last year, with some areas such as Leeds making it into the top five of successful cities or “prosperity hotspots”. Average earnings in Leeds also rose faster than any city in the UK – up six per cent to £27,470. But despite the increase in millionaires, Yorkshire is nearly at the bottom of the regional prosperity table prompting calls for investment in skills to close help gaps.
A major winner was Scotland which saw the biggest increase to household wealth, rising by 13 per cent versus London’s 12 per cent rise. Barclays said the rise was likely linked to Scotland’s median private pensions wealth, which jumped 60 per cent.
The research uses factors including numbers of millionaires, average annual pay, the percentage of households giving to charity, business growth rates and exam scores to generate a unique prosperity score.
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, researched published today shows.
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.
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.
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.”
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 knowledgebased service sectors.
“By making these issues a priority, regions can attract more of the industries and jobs which offer the best prospects of longterm growth and prosperity.”
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.”
We have waited a very long time for this to occur. Hull city council leader Stephen Brady who added that the effort needed to maintained.
THAT LEEDS features so prominently in the latest Barclays’ Prosperity Map, with Sheffield ranked as one of the most desirable locations for small and medium-sized businesses, bodes well for the future. Evidence that Yorkshire has finally emerged from the last recession, the scope for future growth is significant – just think what this region could achieve if it had the transport and business infrastructure to match the rest of the country.
Yet, while the concept of a ‘Northern Powerhouse’ has helped to focus the minds of London-based politicians, the North-South divide is actually far more nuanced – prosperity hotspots in Yorkshire can neighbour poverty-stricken communities still stuck in a malaise that can be traced back to the industrial unrest of the 1970s and ‘80s.
This is important as Theresa May sets about delivering a One Nation vision which champions the interests of all – and not just a ‘privileged few’. Though cities and larger towns will be the main drivers of growth in the North, it’s vital that this is not at the expense of those neglected areas where unemployment and welfare-dependency are above the national average.
Unless this changes, and devolution does provide an opportunity, these towns will remain a drain on the public purse rather than a net contributor – and that is the interests of no one, least of all the Government.