Our Economy 2020 with Insights Into How Our Economy Varies Across Geographies OUR ECONOMY 2020 OUR ECONOMY 2020
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Our Economy 2020 With insights into how our economy varies across geographies OUR ECONOMY 2020 OUR ECONOMY 2020 2 3 Welcome from An overview from Andrew Hodgson, Chair, Victoria Sutherland, Senior Economist, North East Local Enterprise Partnership North East Local Enterprise Partnership I am proud that the North East LEP has a sustained when there is significant debate about levelling I am pleased to be able to share the Despite this, the region has seen record of using economic evidence to inform its up the economy, devolution and the importance third annual Our Economy report. As good progress across a wide range of decision making. This is a commitment shared by the of infrastructure, we have taken the opportunity Andrew has highlighted, this year’s indicators. The North East has improved Board, our Executive Team and our partners across to present evidence about the diversity and report is being published at a time of its performance compared to 2014 the regional economy. interconnectedness of our regional economy. immense change in the economy. It is on around 60% of indicators we have important that we have a benchmark examined and closed the gap with The Strategic Economic Plan, our roadmap for As we look forward, a strong evidence base will against which we can assess the England excluding London on around bringing more and better jobs to the region, is be a crucial part of our response to dealing with impact of COVID-19 on the North East 40%. Key areas of progress since built on a comprehensive understanding of the the economic impact of COVID-19. The pandemic is economy and this year’s report will 2014 include increased expenditure challenges and opportunities that the North East having a significant impact on the regional, national provide this. on R&D by businesses, increased economy faces. and international economy and understanding the proportion of our working age nature and extent of these changes will be critical for Each year, Our Economy reviews the population qualified to degree-level The natural first step in the work we did last year the regional response. North East’s performance across and above, increased employment Contents with regional partners and government to build the a range of indicators. These were in science, research, engineering and proposals in our Local Industrial Strategy was a COVID-19 will impact on every indicator we analyse. selected to reflect the international technology roles, improved access review the evidence about our region’s productivity At the time of publication (June 2020), none of the evidence on what drives regional to superfast broadband and 4G and performance. Indeed, one of my highlights of the datasets we draw on in this report had published economic growth and the issues and increased public expenditure on year was the Local Industrial Strategy Summit held any post-COVID-19 data. As such, this report is best priorities identified in the North East transport. It will be important that the Welcome from Andrew Hodgson 2 in July, where we tested the emerging findings from seen as a baseline of how the North East economy Strategic Economic Plan. region works together to build on these and overview from Victoria Sutherland this review and explored international evidence was performing prior to COVID-19. We will work with improvements, especially at this time of about what works in improving productivity. These our partners to return the North East to a positive The value of the goods and services economic crisis. Introduction 4 evidence-led discussions contributed significantly to trajectory as soon as possible. Having this baseline produced by the North East and the our approach. available is a crucial contribution to the future and I two key factors that underpin this – the In this year’s Our Economy report, Section 1 am pleased to welcome its publication. proportion of our residents that are we have examined the economic Our Economy is an underpinning tool in this work. It in employment and the productivity geography of the North East in more Update on the North East Strategic Economic Plan targets 6 tracks the performance of the North East economy This is our third Our Economy report. As with the of our workforce – have all increased depth. This has demonstrated both highlighting changes over time, and its publication previous two, it has been compiled by our Senior since 2014. However, the proportion of the diversity of our places and how Section 2 has become an established event in our calendar. Economist, Victoria Sutherland, who will leave us this residents in employment has declined interconnected they are. Going forward, North East Strategic Economic Plan programmes 10 Its comprehensive review of key data enables us to month to take on an exciting new role with the What slightly since last year’s report and the focus of our efforts must be to of delivery: data and next steps understand how the region is performing, enabling Works Centre for Local Economic Growth. Whilst I productivity has remained the same as ensure that every part of our region is us to focus on the key issues impacting on our would like to thank everyone in the North East LEP last year before inflation is considered able to contribute to, and benefit from, Business growth 12 economy, and to position the North East for future team that has contributed to Our Economy, I would I am proud that the North (meaning it has declined in real terms). efforts to improve the performance of Innovation 14 growth and opportunities. like to put on record my particular thanks and best In addition, as the performance our economy. Skills, employment, inclusion and progression 16 wishes for the future to Victoria for the work she has East LEP has a sustained of England excluding London has Transport connectivity 18 It also provides an opportunity to explore important done to develop Our Economy and on the North East continued to improve on all three of record of using economic Victoria Sutherland, Infrastructure and investment 20 themes in detail through our annual deep dive. LEP’s wider research and analysis work during her these measures, the gap between the Senior Economist, North East Local Two years ago, we focused on our international time with us. evidence to inform its North East’s performance and England Enterprise Partnership links as we considered the implications of the EU decision making. excluding London has widened. These Section 3 Exit referendum, and last year explored regional Andrew Hodgson, are disappointing findings and suggest How our economy varies across geographies 22 competitiveness as we framed our approach to Chair, North East Local Enterprise Partnership that, even before COVID-19 began to the Local Industrial Strategy. This year, at a time impact on the North East, there was a need to do more to grow and develop our economy. OUR ECONOMY 2020 OUR ECONOMY 2020 4 5 Introduction The North East Local Enterprise Partnership area • A strong cultural, heritage and sports offer used. This is generally for 2018, 2019 or 2018/19 that supports the tourism sector. The North East LEP area covers seven local • Change over time has been measured from 2014, To Edinburgh, Glasgow, Aberdeen authority areas: Our Economy report to reflect the publication date of our Strategic Map of the North East LEP area Principal rail links Economic Plan Port of Berwick Berwick-upon-Tweed Tyne & Wear Metro County Durham The report: LEP boundary • The North East LEP area has been benchmarked Holy Island Gateshead Provides an annual overview of the North against England excluding London in line with A1 Motorway Farne East LEP area economy and how it is changing our Strategic Economic Plan targets. Where Islands Key routes over time possible and where it adds value, comparative Newcastle upon Tyne Enterprise Zones data has also been provided for the other core Wooler North Tyneside Provides a resource for partners to inform city LEP areas. In a small number of cases, where Ports decision making data was not available for England excluding Airports Northumberland London, England or the UK has been used as an Provides a comprehensive pre-COVID-19 alternative benchmark Alnwick South Tyneside baseline against which future trends can be compared • Not all datasets are available at a LEP level. To Scotland A697 Northumberland Coquet National Park Rothbury Island Sunderland Where LEP level data is not available, data A1 A68 Positions the North East for future for the North East region as a whole, which The North East economy was traditionally opportunities, including those arising from the includes the Tees Valley LEP area, has been used. dominated by mining and manufacturing. Industrial Strategy. To differentiate where these have been used, we refer to the North East region. A clear priority Ashington Morpeth Whilst manufacturing remains an important part As well as providing an overview of the North going forward is to work with data providers Bellingham Bedlington A696 Port of Blyth of the regional economy, it has diversified over East economy, this year’s report examines the to encourage them to publish more data at a A68 A189 Blyth recent decades and also has: economic geography of the North East in more LEP level Newcastle Cramlington depth. The North East LEP area has a unique Airport Whitley Bay Tynemouth Port of Tyne • Key assets in the energy sector, including offshore combination of major conurbations, large and • Where data has a monetary value such as GVA, NEWCASTLE UPON TYNE South Shields A69 energy and subsea technologies, regional energy, small towns and sparsely populated rural nominal values have been given, which means A69 To Carlisle, Hexham and demonstration and innovation areas, a geography that provides opportunities that data has not been adjusted to account Manchester Haltwhistle Blaydon A1 SUNDERLAND GATESHEAD Port of Sunderland and challenges for the development of the for inflation A692 A68 Washington • World leading clinical research that supports a economy.