The region's finance and professional services industry has seen 12% growth over the last 10 years, according to new research.
Membership group TheCityº£½ÇÊÓƵ, which represents the interests of professional services firms, has published a report looking at the industry's output between 2001-2021. It suggests the North East alone generated economic output of £3.6bn and the group says continued expansion of Government infrastructure across the º£½ÇÊÓƵ could instigate further growth.
Pointing to the region's strengths in banking, mortgage lending, legal services and management consulting services, the report's authors identify Newcastle as the North East's professional services epicentre, though Sunderland's gross value added generated by the sector was not far off its Tyneside neighbour. They champion what they say is a diverse financial, professional and business services sector which includes regional companies in law and finance and specialist consultancies supporting key areas of opportunity like offshore energy.
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Jerry Arneja, TheCityº£½ÇÊÓƵ chair in the North East, and area director, North East & Humber Business Banking, HSBC º£½ÇÊÓƵ, said: "It is clear that not only is the financial and related professional services industry an important contributor to our national economy, but it also delivers real opportunity and prosperity for the North East. The growth in industry employment in the North East over the past decade reflects the significant investment made by firms and their commitment to building a strong pipeline of talent."
TheCityº£½ÇÊÓƵ's research suggests the North East industry employed as many as 56,000 people in 2021 - equivalent to 5% of the region's total employment. It has now made a series of recommendations - based around devolution - which it says could encourage growth.
Among them are calls for greater consistency in devolved powers offered to areas; more education policy making at local level including more flexibility introduced to the Apprenticeship Levy; and a more co-ordinated approach to attracting investment, as well as support for industry hubs where there is not a Mayoral Combined Authority or an arms-length investment body.
Miles Celic, chief executive officer, TheCityº£½ÇÊÓƵ, said: "Financial and related professional services are an engine for growth and enabler for the wider economy. There’s so much more potential which can be unlocked through further devolution, skills reform and more investment in infrastructure. By working together with governments, our industry can make an even greater contribution to national growth and prosperity."
