How Norfolk’s economy compares to the rest of the UK

While the UK economy continues to fluctuate, with political uncertainty adding to the difficulties created by social change and international competition, Norfolk continues to show above-average levels of growth and productivity.

Norfolk is home to some of Britain’s most prominent businesses. We think of the insurance giant Aviva (the former Norwich Union) and the sports car manufacturer Lotus. Smaller businesses have always been important too, particularly in farming, fisheries and food production. But while the local economy remains relatively healthy, there is still much that needs to be done to ensure continued growth and prosperity into the future.

Employment remains steady

According to the most recent Norfolk Economic Intelligence Report, based on data up to June 2019, employment levels across Norfolk remain at a healthy 75.4%. This is slightly higher than the national average of 75.1%, but significantly below the regional level of 78%. Unemployment is at 4%, which again is somewhat better than the national average (4.2%) but not quite up to regional levels (3.5%).

Although the figures show a slightly upward movement in employment levels year on year, in more general terms, employment has remained fairly steady over the past couple of years. After hitting a high at the end of 2016 the numbers declined slightly before levelling out at the start of last year. However, the current level of employment is still higher than it was at any point from 2009-2016.

Higher than average

In terms of comparisons, employment in Norfolk has been higher than the national average throughout the decade, if lower than the regional level. In the last year or so the gap between the national level and Norfolk has shrunk so that now we can only show a marginally higher level of employment than the average for the UK as a whole.

The same pattern can be seen in house prices across the county. The average house price in Norfolk has risen by 31% since April 2015, but only 6% since 2018. Nationally, house prices have risen by 27% since 2015. Regionally the figure is 42%, with the report noting that this reflects the high price of properties in Cambridge, though more recent figures suggest that house prices in the city are now falling.   

Business growth

In April 2018 it was reported that the local economy was treading water; in many ways that continues to be true. Like the rest of the country, Norfolk is affected by the uncertainty surrounding Britain’s exit from the European Union, with the result that international companies are reluctant to make firm commitments within the county. In many cases, local employers that do a large amount of business overseas are also waiting to see which way the economic winds will blow.

There are some causes for optimism though. Norfolk has many businesses in sectors that are to some degree “Brexit-proof”. Tourism and the visitor economy are increasingly important to the county, and greater investment in the hospitality sector will prompt further growth.

It is to be hoped that Norfolk’s important agribusinesses will also weather the storms ahead and that national demand will make up for any loss in international trade.

Future investment

Hopefully, the efforts of Lady Barbara Judge as the UK business ambassador on behalf of UK Trade and Investment will help to secure the trade deals and investments that Norfolk and the rest of the UK will need when we are no longer part of the EU. As one of the country’s most prominent business figures with strong ties to the US, Lady Barbara is well placed to argue the case for Britain’s continued global economic importance.  

Locally the Invest East project continues to support local businesses. In particular, the Investment Readiness Scheme has helped many new start-ups begin the process of attracting outside investors in order to grow and prosper. In the energy sector, the East of England Offshore Wind Skills Centre (OWSC) has been providing vital training and support since it was established in April 2018. Community grants have also been made available for small VCSEs to provide training and support in terms of getting closer to the workplace or into formal learning.

Infrastructure

Also important is ensuring that Norfolk has a modern and up-to-date infrastructure to enable business growth and to provide reliable, high-speed connections to the rest of the UK, and the world. A positive step in this direction was the establishment of the new 90-minute train service between Norwich and London Liverpool Street in May 2019, following a long campaign by the ‘Norfolk in 90’ pressure group.

Norfolk represents 1.5% of England’s economic output, and 1.25% of the economy of the UK overall. Although currently there is restrained growth in the county, the fact that Norfolk is holding steady remains a cause for optimism. Careful nurturing and investment are needed to stimulate future growth, to ensure jobs for the next generation and tomorrow’s businesses.