York Economy

The City’s economy has changed beyond recognition over the last decade. A declining manufacturing base had been replaced by expansion in Technology and Higher Education. The tourism sector has shown sustained growth.
As a result, on average, 300 additional jobs have been created each year and unemployment levels continue to be well below the regional and national average. Our economy has been more resilient to the recession, and its outfall, than any other in the north of England.
It is surprising therefore that the Chamber of Commerce should today sound a panic warning highlighting an apparent conflict between conservation of our built and natural environment and commercial growth.
There is no reason why there should be conflict. Indeed, one of the reasons that key investors relocate to York is because of its environment.
There is a significant reliance on the public sector in the City. However, many of these jobs are in – or associated with – Higher Education. That deserves to be identified in a separate – presently less vulnerable – sector of the economy. It is certainly one that is spawning a range of new businesses. Increasing numbers of graduates are looking to make their permanent homes in a City which already has a more highly skilled workforce than its competitors.
Ironically the Chamber cites the controversy over the Union Terrace car and coach park as a sign of lack of a will to encourage the private sector. Yet the expansion of St John’s would effectively mean an even higher proportion of public sector jobs in the City. In any event, most commentators – although not as yet the council’s Labour Leadership – now accept that both parking and additional floor space for St Johns can both be accommodated on the site (and nearby).
In an article in today’s Yorkshire Post, Micklegate ward Labour councillor Julie Gunnell claims – without any evidence – that York had “missed” expansion opportunities in the past. Maybe so. But isn’t this the same Councillor who campaigned so stridently against the redevelopment of the old Terry’s factory site? Delays to that project pushed the eventual approval of planning permission into a period when the economic cycle was in decline. Hence much of the site is effectively now mothballed.
It will be interesting to see how entrepreneurs line up on the Oakgate proposals for Monks Cross. The project would see a new Marks and Spencers (home ware) shop established together with either a new Sainsbury’s or a John Lewis store. Most publicity so far has been about the community benefits – most notably the provision of a Sports Stadium – but over 500 permanent new jobs could also be created by the development.
The planning application will be the first key test for a new Planning Committee which will need to balance community interests, including the viability of the retail sector in the city centre, with what is a rare large scale investment opportunity.