The contribution of the Greater Thames Valley (GTV) to the UK economy ‘dwarfs’ that of the powerhouses of Greater Manchester and Greater Birmingham combined.
A Local Enterprise Partnerships (LEP) report into Gross Value Added (GVA), a measure of an area's contribution to the UK economy based on the value of the goods and services it produces per year, revealed the GTV delivered £144,939m GVA in 2015/2016.
In contrast, the combined GVA figure for Greater Birmingham and Solihull and Greater Manchester was £99,176m.
The GTV, which is made up of the Thames Valley Berkshire, Enterprise M3, Buckinghamshire Thames Valley, Solent, and Oxfordshire LEP areas, has a comparable working age population to Birmingham & Solihull and Greater Manchester combined—3,023,100 and 3,028,100 people respectively.
The main drivers behind the GTV’s productivity are a highly-skilled, educated workforce, and good international and local connectivity.
The area also has what a spokesperson characterises as ‘outstanding’ education and research assets, quality housing stock, and high-growth economic hubs.
The Greater Thames Valley’s digital sector is also playing a key role in supporting growth across the region.
‘These results emphasise the importance of the Greater Thames Valley as an economic powerhouse, which has a significant impact on the health of the UK economy and punches above its weight when it comes to productivity,’ said the chief executive of the Berkshire Thames Valley LEP, Tim Smith MBE.
This follows a Conservative conference where there was much speculation about Theresa May’s Government’s commitment to the Northern Powerhouse agenda.
Speaking at a fringe meeting on Monday, the president of the Local Government Association (LGA) Lord Kerslake said former chancellor George Osborne’s flagship policy was at a ‘fork in the road’.
However, the current chancellor Philip Hammond decisively quashed rumours the Government was not committed to the powerhouse agenda in his conference speech.
‘The Northern Powerhouse project takes a visionary approach linking the great cities of the North into a coherent economic entity, an interconnected region that raises productivity and delivers growth by making it easier and cheaper for firms and individuals to move goods, people, and ideas,’ he said.
‘And I pledge today, that the Treasury, under my leadership, will continue to drive the Northern Powerhouse project working in partnership with local leaders to see it deliver its potential for people in the North.’
He also added: ‘our ambition isn’t limited to the Northern Powerhouse. We want to create the conditions for success in the North, the South, and everywhere in between.’
