• Swindon & Wiltshire News
• Monday March 21 2022
• Author Name: Peter Davison

Good prospects for economic growth in South West as Swindon performs well in growth index

The South West’s economy is expected to grow faster than that of any other region in the UK this year, according to the newly-published Demos-PwC Good Growth for Cities Index.

And the report ranks Swindon as one of the top three cities in the UK in its Good Growth Index – which ranks 50 of the UK’s largest cities based not just on economic growth but on 12 key economic factors, including jobs, health, income and skills, as well as work-life balance, house affordability, travel-to-work times, income equality, environment and business start-ups.

The report says provincial cities are set for the strongest economic growth, as the new analysis shows the sectors most badly affected by the pandemic are showing signs of sharper recoveries than what was originally expected.

Economic output in the South West grew by 8.1 per cent in 2021 (UK average 7.4 per cent) and is expected to grow by a further 6.1 per cent in 2022, say the report authors. The South East grew by 7.9 per cent and is expected to grow by a further 5.9 per cent.

Meanwhile, the overall index ranking places Swindon in third place with a rating of +0.6, behind Oxford (+0.65) and Bournemouth (+0.62), thanks mainly to its above average jobs availability, transport, and safety. However, it scored below average on work-life balance, new business launches, skills, income distribution, and the quality of its high street and shops.

Reading, which with an overall rating of + 0.51 was fourth, scored well for income, health and skills but well below average for income distribution. Bristol, in ninth place with a rating of +0.43, excelled in skills and performed well in most areas except house price-to-earnings, and transport.

Karen Finlayson, regional lead for government and health industries at PwC, said: “Once again, Southern cities dominate this year’s Good Growth Index.

“It’s clear that regional inequality remains a very clear reality that can’t be ignored. The Government’s Levelling Up White Paper was a welcome acknowledgment of what is a long-term and incredibly complex problem.

“Every individual city will face its own unique set of challenges and priorities that will need to be addressed through innovative, imaginative and tailored solutions.

“The provincial cities that are currently performing strongly will now have a different set of needs than larger metropolitan cities, some of which have experienced a period of poor growth.

“The growth we’re seeing in these areas, combined with changing priorities among the public, presents us with a golden chance for a big reset; this is a generational opportunity to accelerate the levelling up agenda.

“We must capitalise on the growth we’re seeing outside of our larger cities, which is driven in part by an increased focus on wellbeing and fairness, but there is only a small window to act, otherwise we risk drifting back to the status quo.”

And Justin Martin, devolved and local government lead for PwC, said: “We’re emerging from the pandemic with a new set of priorities, largely focused around fairness, the environment and work-life balance. It’s likely that the way we have lived over the past two years has led to people reflecting on what they value the most.

“This appears to be having a significant impact on the fortunes of different places, with the cities that perform well not only having strong local authorities but also being characterised by strong environmental and safety credentials.

“While the vision set out in the Levelling Up White Paper centred primarily around geographic inequality, it did recognise that there are multiple societal disparities which affect people and could hinder the economic recovery. We know from our research that women and people from minority ethnic backgrounds are the most likely to have been negatively impacted as a result of the pandemic.

“Central government, local government and businesses all have a role to play in developing localised plans to address not only the regional inequalities but the societal gaps that also exist within their cities, towns and communities.”