Economy of Leeds

Economic Indices

Below is a collection of economic indices featuring Leeds. It is important to remember that while useful, surveys and indicators have limitations, and are at times subjective and incomplete. For example, no complete list of factors affecting quality of life can be created, and the way people weight these factors differs.

Quality of Life

Business

Cushman & Wakefield European Cities Monitor (2010) - A survey based on the views of 500 European businesses of Europe's leading business cities.

In the same survey, when asked how well companies know each of the cities as a business location, 19% said they were familiar with Leeds as a business location. This was the 6th highest in the UK after London (82%), Manchester (33%), Birmingham (28%), Edinburgh (25%) and Glasgow (21%).

GVA

In 2012, Leeds' GVA was £18.8bn ($33.2bn) accounting for 1.4% of UK GVA. It also accounts for 44% of the GVA of West Yorkshire, and 20% of the GVA of Yorkshire and Humber. Leeds is by far the largest centre of economic activity in the Yorkshire and Humber region: it is 80% higher than Sheffield's and 117% higher than Bradford's, for example. Compared with other major UK cities and conurbations, its GVA is exceeded only by London (comprising five NUTS 3 areas - £309.3bn), Greater Manchester South (£34.8bn) and Birmingham (£21.2bn).

In 2012, the economy of Leeds remained 2.6% behind its peak output in 2008.

Over the last 10 years, GVA growth in Leeds was marginally lower than West Yorkshire, but equal to the region as a whole. Growth was also lower than the UK as a whole. Over the last 5 years, again it was lower in these three areas.

¹excluding Leeds, included Birmingham, Bristol, Liverpool, Manchester, Newcastle, Nottingham and Sheffield

Productivity

GVA per employee in Leeds is estimated to be £46,900 per employee in 2012. It is higher than other areas in the region, but lower than London. It was higher than all other NUTS 3 areas except Edinburgh (£54,100). Growth between 2007 and 2012 was 7% - equal 9th of all comparable 18 NUTS 3 areas.

²excluding Leeds, included Birmingham, Bristol, Liverpool, Manchester, Newcastle, Nottingham and Sheffield

GDP

According to the 2012 Eurostat figures, GDP per capita (in euros) of Greater Manchester is = €27,500 just ahead the West-Midlands with €26,600 but only half the GDP per capita of Dublin €57,200 or London with €54,200.

Greater Manchester has a total GDP of €74.398 bn, West Midlands has a total GDP of €73.538 bn but less than the €85.700 bn in Greater Dublin and €450.379 bn in Greater London.

Employment, Welfare and Education

The 2012 mid-year estimate for the population of Leeds was 757,700, and growth between 2011 and 2012 was estimated to be 0.93%, the second lowest of the Core Cities ahead of Liverpool (0.83%).

Earnings

¹Median earnings in pounds for employees living in Leeds.

²Median earnings in pounds for employees working in Leeds.

Head offices

Asda has its head office in the Asda House in Leeds. Jet2.com, an airline, has its head office on the grounds of Leeds/Bradford Airport in Yeadon, City of Leeds. GHD have their headquarters at Bridgewater Place. Other companies to be headquartered in Leeds include First Direct, Republic, Premier Farnell, Ginetta Cars, Leeds Building Society and Yorkshire Bank.

GDF Suez Energy UK, a subsidiary of GDF Suez, has its offices in Leeds.

Manufacturing

Leeds has nearly 1,800 companies engaged in a diverse range of manufacturing activities, including specialised engineering, print, food and drink manufacture, chemicals and medical technology. Employing well over 30,000 people, the sector generates 10.8% of Leeds’ total output of over £15 billion a year. Most Leeds manufacturing companies are small to medium-sized. See http://www.leedsmanufacturing.co.uk/ for lists of companies. Major companies include Siemens and Mitsubishi, ARLA foods and DairyCrest.

Vehicle production

Optare buses were made in Cross Gates until 2010 when production was moved to new facilities at Sherburn-in-Elmet. Ginetta sports cars are made in Garforth. Treves UK have a factory in Leeds as well as one at nearby Knaresborough manufacturing components for car interiors.

Food production

Food production makes up part of the Leeds manufacturing base. Arla Foods UK are based at Stourton, Northern Foods based at Cross Green and Goldenfry at Wetherby. Supercook were based in Leeds but have since also relocated to Sherburn-in-Elmet. Brewing has for sometime been prominent in Leeds. The Tetley's Brewery was until its closure in 2011 the main site for this, Carlsberg-Tetley's still have a distribution centre at Tingley. The Leeds Brewery still brew beer in Leeds as does the reopened Kirkstall Brewery (although not at the original site).

Unilever manufacture a variety of goods at their factory in the city's Whinmoor district.

Chemicals

The city's main chemical producer, Yorkshire Chemicals closed both its Hunslet and Kirkstall plants in the 2000s. Rhodia UK also closed their smaller chemical works in Wortley, demolition was approved in 2011. There remains however several chemical works within the city, including E Chem in Kirkstall, Clariant in Rawdon and Chemsol in Hunslet.

Financial and professional services

Leeds is one of the largest business centres in the United Kingdom, around a quarter of a million people are employed in the financial and professional sector in the Leeds City Region with an output valued at £13 billion per year. Financial and professional services are largely based around the traditional business quarter in the city centre, as well as the newer area along the South bank of the River Aire. Many smaller legal and professional firms occupy the smaller Georgian office buildings around Park Square, while many banks and insurance underwriters are set around Park Row and East Parade. First Direct have their headquarters some distance from the main business districts in the industrial Stourton area.

Unlike many comparable Northern cities, Leeds had a mixed economy throughout the latter half of the 20th century and so did not suffer the same industrial decline as other cities. However, by the 21st century Leeds' economy went into economic decline following the Great Recession, and unlike comparable Northern cities, it is yet to recover economically. The service sector of the economy flourished in the 2000s, with legal, accounting, consultancy, banking, insurance and recruitment firms moving to the city. In 2002 it was estimated that 38,000 new jobs would be created in Leeds over the next ten years, and most would be in the financial services sector.

Companies with regional or national offices in Leeds, include KPMG, Norwich Union, First Direct, Lloyds Banking Group (Lloyds TSB), Lloyds Banking Group (HBOS), Allied Irish Bank, Royal Bank of Scotland, HSBC, Leeds Building Society, Alliance and Leicester, Yorkshire Bank, Zurich Financial Services and Direct Line. There are further financial institutions within the Leeds City Region with Yorkshire Building Society and Bradford and Bingley offices in Bradford and further HBOS offices in Halifax.

The Bank of England, who have their headquarters on Threadneedle Street in London, have their second offices on King Street in the heart of Leeds' business quarter.

The Financial crisis of 2007–2010 lead to the loss of jobs within the sector. A report produced in December 2008 predicted 28,000 jobs would be lost in Leeds, throughout the course of the recession, with many in the financial sector. The report however also predicted that other boroughs within the Leeds City Region would bear the brunt of job losses more than the city. A report produced in January 2009, stated that there was a possibility that employment in the financial sector in Leeds would not return to its previous levels with fears that 'Companies could be attracted by lower rent in other cities like Sheffield or Liverpool when recovery begins'.

Both the University of Leeds and Leeds Metropolitan University have established business schools, their presence being supported by businesses in the city.

Retail

Leeds was described in 2005 by the Lonely Planet guides as the 'Knightsbridge of the North'. The range of shopping facilities, from individual one-off boutiques to large department stores such as Harvey Nichols and Louis Vuitton outlets, has greatly expanded the Leeds retail base. The Victoria Quarter, several existing arcades connected together by roofing the entirety of Queen Victoria Street with stained glass, is located off Briggate, Leeds' main shopping street. Other popular shopping attractions include Leeds Kirkgate Market, Granary Wharf, Leeds Shopping Plaza, Headrow Shopping Centre, Crown Point Retail Park, The Light, The St John's Centre, The Merrion Centre Leeds, Birstall Retail Park and the White Rose Centre.

Leeds was ranked 9th in the league tables of top 50 UK retail centres in the Retailvision 2011 survey. This placed it ahead of Bristol and Leicester but behind Glasgow, Manchester and Birmingham. The city has fallen from its position in 2003 when it was ranked 3rd on Experian's list of UK shopping destinations. The next year it was overtaken by Birmingham to be ranked in 4th place. Leeds has an almost equal mix of premium retail and value stores, with premium accounting for 9.8% of all stores in the centre and value stores 9.3%. This balance is unusual for a top 10 ranked retail destination. The proposed Eastgate Quarters will enlarge the shopping area significantly, and is due to be anchored by John Lewis and a second Marks and Spencer store for the city. The Trinity Quarter is a large shopping development under construction that is due to open in March 2013. It is a part redevelopment of a run-down part of the city centre, and part re-modelling of the existing Leeds Shopping Plaza.

Tourism

Leeds has received several accolades in the field of tourism; including being voted by Condé Nast Traveler magazine Readers' Awards as the "UK's favourite city" in 2004, "Best English city to visit outside London" in 2005, and also "Visitor city of the year" by The Good Britain Guide in 2005. Situated close to the UK's geographical centre, the city benefits from good transport connections with the M1 running from Leeds to London, the M62 connecting Leeds with Manchester and the seaport cities of Hull and Liverpool, and the A1(M) for linking to the north. Leeds Bradford International Airport is a rapidly growing regional UK airport, with an 87 per cent growth in terminal passenger numbers in the last five years. Over 450 weekly flights connect the city to over 70 major European business and holiday destinations.

Tourism in Leeds is estimated to support over 20,000 full-time equivalent jobs, and on average Leeds attracts around 1.5 million people annually who stay overnight, plus a further 10 million who visit on day trips. In 2009 Leeds was the 8th most visited city in England by UK visitors and the 13th most visited city by overseas visitors. Visitors to the city bring nearly £735 million into the local economy each year. Major national and regional attractions include the Royal Armouries Museum, Leeds Art Gallery, the Henry Moore Institute and the West Yorkshire Playhouse. Leeds is also the only city outside London to have both its own opera and ballet companies – Opera North and Northern Ballet Theatre, both internationally renowned.

Throughout the summer high season, Leeds CitySightseeing buses run sightseeing tours, while Leeds City Cruisers operate regular river cruises.

Infrastructure

Leeds is situated on the M1, the M62 and the A1(M) connecting it with cities to the north, south, east and west. Leeds City station is one of Network Rails fourteen principal stations and has rail links to London, Birmingham, Manchester, Liverpool, Glasgow, Edinburgh and other major cities. Leeds has no mass transit system, the previously proposed Leeds Supertram was axed during the early stages of construction following the escalation of costs, the Leeds Trolleybus has since been proposed as an alternative, running the same route. Leeds is served by Leeds Bradford International Airport, with connections to most major European cities. Air connections to Heathrow (British Airways) and Amsterdam (KLM & Jet2.com) are available. Although a railway line lies close to the airport, only buses connect it with the city centre.

In 2016 Leeds approved a £21m plan to district heat 2,000 homes using surplus heat from the Cross Green energy recycling and materials recovery facility, which opened in 2016.

Development

In recent times Leeds has seen many new developments, with high rise schemes making a much larger mark on Leeds' skyline. Sixteen skyscrapers are currently under construction or proposed, all of them taller than West Riding House (262 ft or 80 m) – Leeds' tallest building from 1972–2005. Bridgewater Place, known locally as 'The Dalek', recently became the tallest building in Leeds. A taller building, the 561-foot (171 m) Lumiere building was planned to be finished by 2012 but building work has been put on hold as of 9 July 2008 owing to the state of the world economy. The plan for even taller 'Kissing Towers' of Criterion Place has been scrapped for similar reasons. Since postponing any further work on Lumiere, the developers have applied to Leeds City Council for the development to be revised, making it taller than the current proposals.

Leeds City Region Enterprise Zone was launched in April 2012 to promote development in four sites along the A63 East Leeds Link Road.