The North is expected to benefit the most from the UK’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 for the UK’s science and technology economy – predicted that 365,000 new jobs would be created by 2050 due to the UK’s transition. United towards net zero – more than in any other industry.
The report estimated that the economic benefits of this growth in science and technology would amount to £ 35bn to UK gross value added (GVA) by 2050, which is the target year. UK statutory to become net zero, and £ 10.9 billion in the 2020s.
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 scientific and technological design and R&D (54,000).
The benefits are also expected to disproportionately affect the north of England – in a boost to the government’s “leveling” agenda.
The North West will see 47,000 new jobs created in science and technology industries by 2050, supporting the country’s net zero transition – most of all parts of the UK – while the North East of England will see its economy grow by 6.5% as a percentage of its income. current output, the largest increase anywhere.
The regional economies of Yorkshire and the West Midlands would see equally large increases as a percentage of their current value – 4% – as would the North West and South West at 3.5%.
London’s economy is expected to grow the most in absolute terms – by £ 3.94 billion.
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Chris Oglesby, Executive Chairman of Bruntwood SciTech, said: “The future of the UK economy will be determined by our science and technology sectors and their role in supporting the transition to net zero.
“The fact that most of the new jobs and growth created by this trip will have a greater impact on regions outside London and the South East is important given the need to replace old carbon-intensive industries. , much of which is based in areas such as the North, Midlands, Scotland and Wales.
‘But these new jobs, which will be created over almost 30 years, are only a fraction of what the S&T sectors can generate for the UK in just 12 months, most of which still fall. from the same pockets in the south-east of England. “
The Market Spotlight report also estimated that sectors will create 107,000 new jobs in 2021 – a 40% increase from 2013 – but just under half – 47% – of the roles are London, the South East or the ‘East Anglia.
It also offered a “more tempered analysis” of the country’s total economic potential for the country’s net zero transition in 2050 than government estimates, projecting 1 million new roles over the next three decades from 2 million by 2030.
Other highlights of the report include:
- Real estate rentals and investing activity have cooled after a busy 2020 – but the market is dominated by secondary housing and specialist lab space in cities such as Cambridge, suggesting an opportunity for new development. high quality spaces.
- 58% of all private equity and venture capital transactions in the UK were in science and technology last year, up from 34% in 2018; biotechnology transactions increased by 96% over the same period
- Only 10% of financing deals in 2020 were at the start of the business cycle, suggesting that start-ups and scale-ups need better access to private equity
Mr Oglesby continued: “The science and technology industries feed on a highly skilled workforce with a higher proportion of education or higher qualifications than other sectors of the economy. This is where we need to do more to strengthen the strength of the UK’s regions, which are home to world-class academic and clinical institutions, and to improve access to the sector through learning opportunities.
“It’s already happening in the pockets, but our research clearly suggests that we can do more. We hope the government recognizes the essential role that the science and technology sector must play in supporting the “leveling” of the economy in its long-awaited strategy.
“It must support regions with more infrastructure, increased access to seed capital and other sources of business financing and give them more power to create local innovation strategies, which are necessary for businesses. help capitalize 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 real estate company Bruntwood.