How the UK’s rising cost-of-living will deepen a regional economic divide

Cost-of-living pressures will widen the UK’s regional economic divide. The forecast shows the UK’s gross value added (GVA) is expected to decline in 2023, but all regions and nations predicted to return to growth in 2024.

Due to its sectoral mix and less dependency on consumer-facing services, London’s economy remains resilient – but how can other UK regions also create attractive places to live, work and invest?

Register to watch our latest webcast, where Peter Arnold, the EY UK Chief Economist, shared a preview of our latest UK Regional Economic Forecast. Joined by Rohan Malik, UK&I Managing Partner, Markets and Accounts, Ernst & Young LLP and EY UK&I Government, Health and Infrastructure Leader, they discussed the impact of the rising cost-of-living on regions, cities and towns.

Topics discussed include:

• The 2022 UK gross value added (GVA) regional results and the outlook for 2023, with London expected to see the UK’s smallest contraction, at 0.2%.
• How consumer-facing sectors are set to struggle, as the cost-of-living is reflected in the performance of the UK’s regional sectoral mix.
• What is needed to support economic growth over the longer term and what policy makers should consider to address skills gaps and different regional strengths. 

More information on the full forecast is available here.

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