The conclusion of COVID-19 restrictions gave reason for optimism at the beginning of the year. But 2022 has presented new challenges.
With the UK likely in a recession, which cities’ economies will be hardest hit? And which cities offer the best opportunities for growth and recovery in 2023?
Report: 2022 UK City Tracker
In our latest report, we examine the impact of the cost of living crisis on cities across the country, and what your business should expect over the next 12 months.
Some of our key findings include:
- The UK economy is estimated to have entered a recession, driven by the cost-of-living crisis which is expected to continue into 2023
- Economic growth is forecasted to resume in the second half of 2023, with most cities expected to see an annual expansion in GVA by Q4 2023
- Reading is expected to be the fastest growing city in Q4 2022, with 1.9% annual GVA growth, driven by its improved connectivity to London as a result of the Elizabeth line opening
- Exeter is forecasted to be the city with the fastest growth expected in the year to Q4 2023. It’s set to be resilient to the cost-of-living crisis recession, with 1.3% annual GVA growth forecast
- Huddersfield ranked an impressive third place on the Q4 2022 city tracker table for GVA growth, only behind Reading and Inner London.
While there’s challenges for businesses to overcome in 2023, there’s still plenty of opportunities for businesses who plan ahead and seek advice early.
Throughout the report, our experts provide sector-specific advice on what obstacles to prepare for, and how your business can overcome them.
Read our City Tracker report to find out more
Understanding Sector Influence
Our report also considers the impact on sectors such as retail and manufacturing, which have been affected by reduced consumption and supply chain issues.
While some sectors are feeling the effects of the economic downturn, others are supporting cities to grow their GVA and employment:
- Wholesale, retail and hospitality will particularly feel the pressure of reduced consumption
- Due to ongoing supply chain issues, construction and manufacturing are also expected to experience weakened performance
- However, technology and advanced manufacturing are still forecast to drive growth in Manchester in 2023
- A thriving sports economy is predicted to help Huddersfield recover in 2023
- In Leeds and Birmingham, creative and digital technologies are expected to help the cities’ economies recover in 2023.
Learn about key sector opportunities
“We’ve started to see increased pressure on all sectors, particularly in the retail, leisure and hospitality sector. Businesses have cited rising energy prices and the cost of living pressures on households causing an adverse impact on consumer confidence.
“For these reasons and more, unexpected cash flow issues are warning signs that should not be ignored. Seeking professional advice as early as possible could help ensure businesses remain solvent.”
Kunal Gadhvi
Restructuring & Insolvency expert
Irwin Mitchell
