London & The South‑East Shine While the Rest Stokes the Fire
The latest insights from EY paint a picture of an economic “hot‑spot” in the capital and its surrounding counties, while the rest of the UK is still trying to warm up. Even in a world where the government is preaching levelling‑up, the numbers say it’s looking more like a rags‑to‑rich story for London and a slow‑poker for the Northeast, Wales, and Scotland.
Growth Numbers – A Quick Peek
- Overall UK: 1.9 % annual expansion (2024‑27)
- London & South‑East: 2.0 % & 2.1 % respectively – just a touch above the national average
- North East, Wales, Scotland: ~1.5 % – lagging behind the big city twins
This is no surprise if you’ve noticed that the big‑box retail and tech campuses keep piling up in London. They’re pulling a disproportionate share of the country’s GDP: from a modest 39 % of the national economy in 2023 to an expected 40 % by 2027. Back in 2005, they were just 36 % of the pie.
Why the Gap Keeps Growing
Rohan Malik, EY’s managing partner for UK & Ireland, warns that the growth advantage is feeding itself that London and the South‑East are hogging the high‑paying jobs and the tech hub buzz. “If we keep letting the cities do all the heavy lifting, the rest of the country gets left in the dust,” he says.
Meanwhile, Zoho UK’s Managing Director Sachin Agrawal nudges the government to get the ball rolling: “We can’t keep letting the region’s dreams shrink as London grows bigger.” His pitch is simple – the government and the private sector need to hand out the same shopping bags of opportunity to all regions.
What This Means for Local Folks
- People are “brain‑draining” out of smaller towns to chase brighter squareroots in London.
- Businesses migrating to the suburbs could slash overhead costs and keep teams distributed.
- Tech tools can keep the workforce glued together, no matter where they’re hanging from.
So, as the Spring Budget looms, the call to action is loud: drive a balance sheet that’s fair, not just a latte‑in‑The‑Square‑East kind of deal.
And a Laugh Theoretically…
If the economy were a family dinner, London would be the cousin who always brings extra dessert – everyone else just wants a slice of the pie. It’s time to split those desserts so the hungry kids (or in this case, the rest of the UK) can taste something sweet too.
