London construction work 'supports jobs in north-east'

London construction work 'supports jobs in north-east'

Construction activity in London understandably has a positive impact on the local economy, but people both inside and outside the industry may not have realised just how important it is to regions quite some distance from the city. A recent report by PricewaterhouseCoopers (PwC) and commissioned by London First found building work in the capital actually triggers a raft of benefits in the north-east of the country. In total, the boost enjoyed by the north-east is worth £12 million a year and includes 280 jobs, reports the Northern Echo. PwC looked at the direct and indirect impact of a variety of developments in London since 2008, as well as those that are due to be finished by 2016. It was discovered that London can have a wide-reaching effect on the UK economy. Baroness Jo Valentine, chief executive of London First, said: "The value of investment in London is huge in terms of generating jobs and economic benefits in London itself, but the knock-on contribution to regional economies is more impressive and shows the boost that London businesses provide to the rest of the UK." It seems that companies handing out construction jobs in London are actually having a hugely positive effect on the nation. For instance, 84 per cent of expenditure on central London office developments was found to remain in the UK. Marcus Robinson, partner at PwC Newcastle, said: "While it is no surprise that London benefits from office development, it is striking that further contribution to the regions is almost double with a significant part going to the north-east." In total, the construction of offices in London creates 34,600 jobs, with 22,400 of these held outside the city itself. This trade also adds some £1.7 billion of gross added value to the UK economy. With this in mind, the creation of construction jobs is not only vital in London, it could also be more important than many people realise to various parts of the UK, including the north-east.

Please rate

Comments 

Ctrl + Enter

Most Read

80% of IT projects in public sector delayed due to IR35

80% of IT projects in public sector delayed due to IR35

The vast majority of UK government IT projects are suffering severe delays due to freelancers quitting over the IR35 tax clampdown. In April, the government shifted responsibility for compliance with the IR35 legislation from the individual contractor to the public body or recruitment agency. The

Innogy and Statkraft win contract at 860 MW UK wind power plant

Innogy and Statkraft win contract at 860 MW UK wind power plant

Norway’s state-controlled hydropower company Statkraft and Germany-based energy company Innogy have won a tender in the Contract for Difference (CFD) auction in the UK for their 860 MW Triton Knoll offshore wind power project.The wind farm off the coast of

Is there a post-Brexit salary rise? It looks like it...

Is there a post-Brexit salary rise? It looks like it...

Following the Brexit vote in June last year, many experts predicted that markets would continue to fall leaving salaries stagnating and even falling in some sectors. Data shows the pace at which new jobs are being created is still slower than in 2014, with economic growth affected by the

This website uses cookies to enhance your user experience. By continuing to use this site, you consent to our use of these cookies. See our Cookie Policy.