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Review of the Humber's Economic Geography Humber Local Enterprise Partnership Review of the Humber's Economic Geography Final report December 2018 Grant Thornton UK LLP Humber Local Enterprise Partnership 30 Finsbury Square London EC2P 2YU +44 (0)20 7383 5100 +44 (0)20 7184 4301 grantthornton.co.uk 4th January 2019 Dear Richard Kendall Review of the Humber’s Economic Geography We have pleasure in enclosing a copy of our report in accordance with your contract. This document (the Report) has been prepared by Grant Thornton UK LLP (Grant Thornton) for Humber Local Enterprise Partnership (the Addressee) in connection with the delivery of the review of the Humber’s Economic Geography (the Purpose). We stress that the Report is confidential and prepared for the Addressee only. We agree that an Addressee may disclose our Report to its professional advisers in relation to the Purpose, or as required by law or regulation, the rules or order of a stock exchange, court or supervisory, regulatory, governmental or judicial authority without our prior written consent but in each case strictly on the basis that prior to disclosure you inform such parties that (i) disclosure by them is not permitted without our prior written consent, and (ii) to the fullest extent permitted by law we accept no responsibility or liability to them or to any person other than the Addressee . The Report should not be used, reproduced or circulated for any other purpose, in whole or in part, without our prior written consent, such consent will only be given after full consideration of the circumstances at the time. These requirements do not apply to any information, which is, or becomes, publicly available or is shown to have been made so available (otherwise than through a breach of a confidentiality obligation). To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Addressee for our work, our Report and other communications, or for any opinions we have formed. We do not accept any responsibility for any loss or damages arising out of the use of the Report by the Addressee(s) for any purpose other than in relation to the Purpose. The data used in the provision of our services to you and incorporated into the Report has been provided by third parties. We have not verified the accuracy or completeness of any such data. There may therefore be errors in such data which could impact on the content of the Report. No warranty or representation as to the accuracy or completeness of any such data or of the content of the Report relating to such data is given nor can any responsibility be accepted for any loss arising therefrom . Chartered Accountants Grant Thornton UK LLP is a limited liability partnership registered in England and Wales: No.OC307742. Registered office: 30 Finsbury Square, London EC2 1AG. A list of members is available from our registered office. Grant Thornton UK LLP is authorised and regulated by the Financial Conduct Authority.Grant Thornton UK LLP is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. Services are delivered by the member firms. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions. Please see grantthornton.co.uk for further details. grantthornton.co.uk Period of our analysis Our analysis was performed in the period between January and August 2018. We have not performed any analysis since August 2018 and, our Report may not take into account matters that have arisen since then. If you have any concerns in this regard, please do not hesitate to let us know. General The Report is issued on the understanding that the management of the Humber Local Enterprise Partnership have drawn our attention to all matters, financial or otherwise, of which they are aware which may have an impact on our Report up to the date of signature of this Report. [Events and circumstances occurring after the date of our Report will, in due course, render our Report out of date and, accordingly, we will not accept a duty of care nor assume a responsibility for decisions and actions which are based upon such an out of date Report. Additionally, we have no responsibility to update this Report for events and circumstances occurring after this date. Notwithstanding the scope of this engagement, responsibility for management decisions will remain solely with the directors of the Company and not Grant Thornton. The directors should perform a credible review of the recommendations and options in order to determine which to implement following our advice. Contacts If there are any matters upon which you require clarification or further information please contact Rob Turner on [email protected] or Ashley Turner on [email protected] Yours faithfully Phillip Woolley Partner [Grant Thornton UK LLP ] Chartered Accountants Grant Thornton UK LLP is a limited liability partnership registered in England and Wales: No.OC307742. Registered office: 30 Finsbury Square, London EC2 1AG. A list of members is available from our registered office. Grant Thornton UK LLP is authorised and regulated by the Financial Conduct Authority.Grant Thornton UK LLP is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. Services are delivered by the member firms. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions. Please see grantthornton.co.uk for further details. grantthornton.co.uk Contents Section Page Executive summary 05 Introduction 18 1. Economic themes 20 2. Economic trends, impact and future perspectives 118 3. Economic relationships 152 4. Economic centres 199 © 2018 Grant Thornton UK LLP. | Final Humber Local Enterprise Partnership | December 2018 4 Executive Summary Executive summary Introduction 1. Economic themes The Humber area is home to 927,000 people and 30,505 businesses across There are three themes that dictate Humber’s economic narrative over the past 3,639sq kilometres of land. It is governed by the four unitary authority areas of decade. These themes provide the context and baseline on which future Hull, East Riding of Yorkshire, North Lincolnshire and North East Lincolnshire. strategy, priorities and activities need to be built. The purpose of this report is to provide a thorough analysis of the internal A growing economy with a need to narrow the gap economic geography of the Humber region and its relationships with neighbouring areas, with a particular focus on emerging changes over the past It is clear from a number of different economic measures that the Humber decade. In particular the analysis looks to test whether any places within the Economy has grown over the past 10 years. Humber have become more interlinked with other places, inside and outside of The total number of enterprises in the Humber LEP area increased from 26,270 the Humber. in 2010 to 30,505 in 2017 – a 16.1% increase. This was driven by both a To do this, the report looks at the Humber economy through four inter-related growth in the business formation rate which increased from 10.2% of all lenses: businesses being formed in the last 12 months in 2010 to 14.7% in 2016; as well as a reduction in the business death rate from 12.3% to 12.1%. 1. Economic themes; This growth in the business base within the Humber is also reflected in the 2. Economic trends; area’s overall economic scale with Gross Value Added (GVA) increasing from 3. Economic relationships; and £17,519m in 2009 to £17,801m in 2015, an increase of £282m or 1.6%. 4. Economic centres. However, within this overall picture of growth two important trends are apparent. The first trend is that growth in the Humber economy still lags behind the national average on a number of indicators. This is primarily because the rate of growth has been slower than the national average. For example, growth in the number of enterprises in the Humber was 16.1% between 2010 and 2017, compared to 27.1% nationally. Similarly, the business formation rate in the Humber economy increased from 10.2% in 2010 to 14.7% in 2016, whereas the national average increased from 10.1% to 15.0% over the same period. © 2018 Grant Thornton UK LLP. | Final Humber Local Enterprise Partnership | December 2018 6 The result is that Humber’s economic scale, as measured by GVA, is smaller A stable industrial structure with a need to look at the industries of the than a number of other city regions or economic centres in the North of future England and, most significantly, growing at a slower rate. As a result, the gap In headline terms, whether measured by employee or enterprise numbers, the between local and national trends is widening. industrial structure of the Humber has remained broadly stable over the past The second trend is the notable variation in the economic performance decade. Compared to the national average the Humber LEP has relative between the four local authority areas that comprise the Humber area. This is strengths in agriculture, forestry and fishing, mining, quarrying and utilities, perhaps best illustrated in terms of GVA, with East Riding of Yorkshire manufacturing, construction, motor trades, transport and storage, public generating £5,990m in 2015, Hull £5,129m, North Lincolnshire £3,415m and administration and defence and health sectors. Each of these sectors North East Lincolnshire £3,267m. However, it is a trend that plays out in comprise a larger proportion of the local economy than other LEPs and have different ways spatially across different indicators.
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