Gateshead Council asked a consortium of Kada Research, Ortus Economic Research and Aspinall Verdi to produce an independent local economic assessment for the borough. The purpose was to equip the council and its partners with a common understanding of local economic conditions, economic geography and the factors that impact on economic growth.
Based on extensive data analysis and consultation with stakeholders, the assessment incorporated a range of themes including:
- Economic and spatial analysis, looking at the overall performance and competitiveness of the Gateshead economy, including spatial distribution. This examined business stocks and flows, business performance and constraints, the linkages between FE colleges and universities and local businesses, job quantity and quality, mobilisation of the local workforce, employee and resident wages and income and wealth inequalities. The analysis also looked at the economic linkages within Gateshead and between Gateshead and the wider regional and national economy.
- Industry analysis, examining the structure of the economy and relative performance, including both traded and local industry sectors. Evidence was provided on which traded sectors present the most significant opportunities for Gateshead because of their concentration and growth potential (‘frontier’ sectors), which traded sectors are important to the local economy but under threat because of forecast decline (‘fragile’ sectors), and the state of those local sectors that provide essential services (‘foundational’ sectors). This analysis also considered the diversity of the economy and whether there is an overdependence on particular sectors.
- Productivity analysis, exploring the factors associated with slow productivity growth in Gateshead and the productivity gap to the region and UK. This analysis examined the factors that drive productivity, identifying constraints and the relative degree to which they affect productivity across different industry sectors.
- Labour market analysis, looking at the state of the labour market. The assessment examined educational attainment, constraints to participation and employment (including the factors behind employment and inactivity gaps) and progression in work, as well as assessing existing and future skills and capacity gaps. The analysis considered demographic change, locational factors, and the changing nature of work, assessing the impact this has on economic performance.
- Physical infrastructure analysis, including the availability, quality and price of land and premises matched against forecast demand (taking account of occupancy changes post-Covid) and digital and transport connectivity, examining where there are constraints affecting business start-up, expansion and inward investment and access to education and employment. This analysis also assessed changes in patronage of town and district centres in Gateshead and the implications of these changes. The variety of visitor attractions was examined, along with their appeal to external as well as local visitors. The analysis also examined the extent to which local housing provision meets the needs and demands of the economy.
- Environmental analysis, examining how the local economy currently performs and the change needed to meet commitments relating to Net Zero and the protection and enhancement of a healthy natural environment, identifying potential opportunities for maximising the local benefits of a greener economy.
Our findings were synthesised in a report identifying the key challenges faced by the Gateshead economy currently and in the future, and recommending potential policy responses to these. The report was accompanied by a comprehensive set of analytical outputs to support Gateshead Council’s ongoing monitoring and assessment of the local economy. The outputs were designed to foster a deeper evidence-based approach to policy, strategy development and implementation in Gateshead, and inform a local economic delivery plan. The outputs will support the council to drive inclusive economic growth, support the development of credible investment propositions for residential, commercial, transport, digital and cultural infrastructure, coupled with sectoral, innovation, place based, and inclusion initiatives, facilitate the development of Green Book compliant business cases to secure investment, enable the transition to a low carbon and environmentally sustainable economy, engage with government and local, regional, and national networks and agencies to influence policy, strategy and delivery plans in Gateshead, attract public funding, inward investment, and capital to meet local economic development ambitions, and adopt a mission-based approach to transformative economic growth across the borough.