Mersey slumps in league of economic success

Dec 15 2007 by Alistair Houghton, Liverpool Daily Post

MERSEYSIDE’s economic growth rate has fallen behind the rest of the UK for the first time in four years.

According to the latest official figures published yesterday, the region’s growth rate has halved.

The slowdown means the region has slipped to third from bottom in a league table of UK regions.

The area’s economic output per capita has fallen behind the Highlands and Islands of Scotland, which it beat last year, to rank 35th out of the UK’s 37 sub-regions.

While the region’s growth rate has slowed, its competitors are pushing ahead.

Merseyside’s economic output per head, known as gross value added (GVA), stood at £12,784 at the end of 2005 – well below the national average of £17,827. Only West Wales and Cornwall performing worse.

Merseyside’s overall economic output grew by just 2.7% in 2005, the latest year for which sub-regional data is available. It is one of the lowest growth rates in the country and well below the national figure of 4.1%.

In the previous year it grew 5.5%, exactly matching the UK growth rate. In the two years 2002 and 2003, Merseyside’s economy grew faster than the UK.

But despite yesterday’s poor figures, the region’s economic planners remain upbeat about its prospects and say the City of Liverpool is performing strongly compared to cities of similar size.

Last year Merseyside was fourth-lowest out of the 37 UK sub-regions, but it has been leapfrogged by Tees Valley and Durham and Highlands and Islands. West Wales and Valleys has dropped to one place below Liverpool, with Cornwall and Isles of Scilly at the foot of the table with a GVA per head of £11,510.

Liverpool was the economic driver within Merseyside, with GVA per head rising 3.3% to £16,321.

GVA per head in Knowsley and St Helens stood at £11,878 and in Sefton at £11,299.

Wirral’s GVA per head stood at just £10,115 – the second-lowest figure in the country.

Dave Moorcroft, director of economic development at The Mersey Partnership, said while he was pleased with Liverpool’s performance the figures showed Merseyside still has work to do to catch up with its rivals.

He said: “At 3.3%, Liverpool’s growth rate is above the North West level of 3.1% and comparable with the national growth rate per head of 3.4%. Growth in Liverpool and East Merseyside (Knowsley and St Helens) over the last 10 years also remains above the average.

“However, the picture across Merseyside as a whole is less encouraging.

“We must redouble efforts to ramp up the productivity of our business base and improve levels of inward investment to make up the shortfall.”

Cllr Flo Clucas, executive member for economic development and Europe at Liverpool City Council, said Merseyside sat so low in the rankings because it started from a low economic base but insisted the overall trend remained positive.

“When you consider where we were when these figures started being compiled we’ve done fairly well,” she said.

OPINION: PAGE 6

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