Subscribe to trusted local news
In a time of both misinformation and too much information, quality journalism is more crucial than ever. By subscribing, you can help us get the story right.
- Subscription costs less than £1 a week with an annual plan.
Already a subscriber? Log in here.
15
Aug 2022
Harrogate district's economic growth slow after £438 million hit from covid
Economic growth in the Harrogate district has been slower than regional and national averages since the district took a £438 million hit during covid.
Gross Value Added (GVA) data published by Harrogate Borough Council shows the local economy contracted by 10% – or £438 million – during 2020 and that growth has lagged behind Yorkshire and the Humber and the UK.
GVA measures the value of goods and services produced in an area, and Harrogate’s figure was set to reach £4.3 billion before the pandemic struck.
It now stands at £3.87 billion – down from £4.26 billion in 2017/18.
A council report said economic performance has been “positive” given the impacts of covid and Brexit, but added there are “continuing challenges that need to be addressed” as experts forecast a gloomy outlook with a UK recession on the horizon.
The report said:
Other figures show the total number of businesses registered in Harrogate increased by 4% between 2016 and 2021 – below both the regional and national averages of 8% and 13%.
Read more:
- Knaresborough shop owner’s appeal brings support after tough summer weeks
- No Harrogate and Knaresborough trains on Thursday amid more strikes
In more positive figures, unemployment is low at 3.1% and the council has been keen to highlight its support for businesses during covid when it handed out more than £96 million to firms which were severely impacted by lockdown restrictions.
The report to a cabinet meeting on Wednesday has recommended “closing down” the council’s covid recovery plan, whilst also providing a review of its economic growth strategy which was adopted in 2017.
At the time it was adopted, the strategy identified a low wage economy and high house prices leading to a “brain drain” of people moving out of Harrogate as key problems facing the district.
These issues are still very much prevalent with average salaries of £25,000 below the UK figure of £30,000 and Harrogate house prices averaging £338,786 this year.
The report added:
0