London tops regional growth figures with North-East not too far behind » SMEInsider

London tops regional growth figures with North-East not too far behind

With the UK economy growing during the last economic quarter, regions across the nation reported an increase in growth. Discover how SMEs are helping British cities flourish, particularly in the North-East.

 

Profits are surging into the capital

According to the RBS growth tracker, the British economy expanded by 0.7 per cent during the second quarter, but the gains according to each region were unevenly distributed, with London leading the pack.

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The capital city reported growth of 0.4 per cent during the latest quarter and an impressive 3.3 per cent for the year so far, with RBS putting the increase down to ICT, professional, scientific and technical services.

At a local level, inner East London reigned supreme, with Old Street’s Silicon Roundabout contributing to the area’s 5.1 per cent year-on-year growth.

 

North-East SMEs are helping the local economy flourish

Turning its attention to the North-East, RBS found that the region’s economy was slumping slightly. The area was one of the fastest growing regions in Q1, but had to settle for third place this time round, sitting behind London and the North-West.

The region’s yearly growth of 5.5 per cent can be put down to the North-East’s professional services, retail, wholesale and utilities sectors. Darlington, Tyneside and Durham were found to be the most prosperous areas in the North-East during Q2.

Heather Waters, regional enterprise manager at RBS, believes that small businesses are the backbone behind the North-East’s promising economy.

‘‘In the North East the economy continues to grow and develop. A popular theme we are seeing is the desire to support local communities,’’ explained Waters.

‘‘Small family-run businesses such as Jiggery Pokery in Stocksfield and Shotley Bridge Nursery in Shotley Bridge are playing an important part in their local areas by becoming hubs for community activities. Consumers are also showing more interest in supporting small local businesses.’’

‘‘There is also much excitement around new enterprises. We have supported Gateshead College’s handPICKED which is an independent gift shop run by the college at the Intu Metro Centre. The student-run shop sells a range of local products created by local businesses.’’

‘‘We are also getting ready to open Entrepreneurial Spark’s new hub in Newcastle next year. The programme, which is powered by NatWest, will see up to 80 entrepreneurs take part in a free sixmonth programme. They will access to full office facilities, and also obtain advice and support to help their businesses grow.’’