The North is set to benefit the most from the 海角视频's transition to net zero, a major new report has shown.
Bruntwood SciTech's Market Spotlight report - a new study on the health and outlook of the 海角视频’s science and technology economy - has forecasted the creation of 365,000 new jobs by 2050 because of the 海角视频’s transition to net zero – more than in any other industry.
The report estimated the economic benefits from this growth in the science and technology sectors would be worth £35bn to 海角视频 gross value added (GVA) by 2050, which is the 海角视频’s statutory target year to become net zero, and £10.9bn over the 2020s.
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Most jobs will be created in specific sectors such as the production of electric vehicles (96,000), the production of electrical equipment (69,000) and science and technology design and R&D (54,000).
The benefits are also set to disproportionately affect the North of England - in a boost to the government’s 'Levelling Up' agenda.
The North West will see 47,000 new roles created in the science and tech industries by 2050 supporting the country’s net zero transition – the most of any 海角视频 region – while the North East of England will see its economy grow by 6.5% as a share of its current output, the largest increase anywhere.
The regional economies of Yorkshire and the West Midlands would see similarly large increases as a percentage of their current value – 4% - as would the North West and South West at 3.5%.
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London’s economy is set to grow the most in absolute terms - by £3.94bn.
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Chris Oglesby, executive chair at Bruntwood SciTech, said: “The future of the 海角视频 economy will be driven by our science and technology sectors and their role in supporting the transition to net zero.
“The fact that most new jobs and growth created by this journey will have a greater impact on the regions outside of London and the South East is important given the need to replace the carbon intensive legacy industries, much of which is based in areas like the North, Midlands, Scotland and Wales.
“But these new jobs, that will be created over almost 30 years, are only a fraction of what the science and technology sectors can generate for the 海角视频 in 12 months alone, most of which still falls within the same pockets in South Eastern England.”
The Market Spotlight report also estimated that the sectors will create 107,000 new jobs in 2021 – an increase of 40% on 2013 - but just under half - 47% - of the roles are London, the South East or East Anglia.
It also offered a "more tempered analysis" of the total economic potential of the country’s 2050 net zero transition than Government estimates, projecting 1m new roles over the next three decades compared to 2m by 2030.
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Other highlights from the report include:
- Property lettings and investment activity has cooled after a busy 2020 - but the market is dominated by secondary accommodation and specialist lab spaces in cities such as Cambridge, suggesting an opportunity for development of new, high-quality space
- 58% of all private equity and venture capital transactions in the 海角视频 were in science and technology last year, up from 34% in 2018; deals in biotech increased by 96% over the same period
- Only 10% of funding deals in 2020 were at the early stage of the business cycle, suggesting start-ups and scale-ups need greater access to investment capital
Mr Oglesby continued: “The science and tech industries feed off a highly skilled workforce with a greater proportion of degree level or above qualifications than other sectors in the economy. It is here that we need to do more to enhance the strength of the 海角视频’s regions, which are home to world class academic and clinical institutions, and to improve access to the sector through apprenticeship opportunities.
"This is already happening in pockets, but our research suggests that we can clearly do more. We hope that the government recognises the critical role the science and technology sector have to play in supporting the ‘Levelling Up’ of the economy in its long-awaited strategy.
“It needs to back the regions with more infrastructure, increased access to seed capital and other sources of business funding and grant them greater powers to create place-based innovation strategies, which are needed to help them capitalise on the unique economic dynamism of science and technology.”
The research was conducted by Development Economics on behalf of Bruntwood SciTech – a joint venture between Legal & General and regional property company, Bruntwood.