The UK Powerhouse study is produced by Irwin Mitchell and the Centre for Economics and Business Research (Cebr). It provides an estimate of GVA* growth and job creation within 45 of the UK’s largest cities 12 months ahead of the Government’s official figures.
According to the report, Cambridge’s economy grew by 2.4% in the 12 months to the end of June 2017.
Cambridge economy was valued at £9.1 billion and was said to see annual employment growth of 0.8%, taking the total employment level to 132,300.
Although the city lost out on top place to Milton Keynes, it continues to outperform Oxford which move down to 4th place in the league table.
Top and bottom five cities by annual GVA growth, Q2 2017
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Source: Office for National Statistics, Cebr analysis
This latest report examines the impact that technology has on city economies and revealed that out of the 45 locations analysed, Cambridge came fourth with a total output valued of £366.6 million. According to the latest figures available, the technology sector in Cambridge had increased by 12% between 2012 and 2015.
Highlighting the growing and vital role technology plays in the wider UK economy, the report predicts that the UK-wide number of jobs in the technology sector will increase by 24% in next 10 years. However, the report raises concerns that the true potential might not be realised.
To ensure Cambridge benefits from the available opportunities in the tech sector, the report advises a holistic approach and makes a number of recommendations. These include:
- Tackling the shortage of highly skilled employees by encouraging more women to enter the industry
- Investing and opening more ‘code academies’ to increase the number of people with the necessary skills in programming languages
- Establishing a plan that allows the existing data flows between the UK and the rest of Europe to continue before the UK officially leaves the EU
- Expanding the Start Up Loans scheme for new business ideas by providing financing deals which offer higher amounts on lower interest rates
- Changing the current UK entrepreneur tax relief scheme as it encourages small firms to sell out early and inhibits the number of businesses reaching unicorn size
- Funding knowledge sharing and skill building platforms, including events for new businesses to network and discuss ideas with successful technology entrepreneurs
*GVA - Gross Value Added