London still outperforming the rest

New figures on regional economic performance published by the Office for National Statistics show that the economy is growing much faster in London than the rest of the UK, says the TUC.

London still outperforming the rest

TUC analysis shows that nominal growth (i.e. not adjusted for inflation) in teh economy of Gross Value Added (GVA) between 2009 and 2014 was much higher in London (28.9%) than the rest of the UK (17.6%).

However, a large part of the difference in economic growth rates is accounted for by finance and real estate. The TUC says this is cause for concern as growth in the Capital may be too dependent on rising asset prices, while the rest of the UK struggles to gain the investment it urgently needs.

TUC General Secretary Frances O’Grady said: “It’s good to see growth across all of the UK’s nations and regions, but outside of London many areas are still in the slow lane. The government must do more to support the whole of the UK.

“Despite London’s stronger performance, the risk is that we are simply seeing a re-run of pre-crash trends. Instead of relying on the financial sector and booming house prices the government needs a proper industrial policy that can shift investment towards the skills, infrastructure and new technology we urgently need for the future.”

 

Change in Gross Value added for UK Nations and Regions from 2013 to 2014 and from 2009 to 2014

 

GVA growth, % (not adjusted for inflation)

2013 to 2014

2009 to 2014

England

4.6

20.9

North East

3.3

15.2

North West

3.1

14.2

Yorkshire and The Humber

3.3

12.2

East Midlands

4.0

21.6

West Midlands

3.0

20.4

East of England

5.3

18.5

London

6.8

28.9

South East

3.7

22.6

South West

4.0

17.6

Wales

2.4

15.8

Scotland

4.6

14.2

Northern Ireland

2.5

12.3

United Kingdom

4.6

20.0

UK excluding London

4.0

17.6

 Source: ONS

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