Economy of Liverpool
Encyclopedia
The Economy of Liverpool encompasses a wide range of economic activity that occurs within and surrounding the city of Liverpool
, England. With a population of 442,300 within official city limits and over 1.3 million in its Larger Urban Zone, Liverpool is one of the largest cities in the United Kingdom and sits at the centre of the broader Merseyside
economic area, which is itself one of the two core economies of the North west of England.
In 2006, the city's GVA
was £7,626 million, providing a per capita figure of £17,489, which was above the North West average. After several decades of decline, Liverpool's economy has seen somewhat of a revival since the mid-1990s, with its GVA increasing 71.8% between 1995 and 2006 and employment increasing 12% between 1998 and 2006.
By sector, Liverpool's GVA is predominantly produced through service sector industries, with industry accounting for almost all of the rest.
The economy of Liverpool is beginning to recover from its long, post-World War II
decline. Between 1995 and 2001 GVA per head grew at 6.3% annum. This compared with 5.8% for inner London and 5.7% for Bristol
. The rate of job growth was 9.2% compared with a national average of 4.9% for the same period, 1998-2002. However, Liverpool is still comparatively deprived; a 2001 report by CACI showed that Liverpool still had four of the ten poorest postcode districts in the country, and almost 30% of people aged 65 or over are without central heating.
of England.
Liverpool is an important centre for public administration having offices from several government departments
and non-departmental public bodies, in addition to local government
agencies. Agencies such as Identity and Passport Service
, Criminal Records Bureau
, and Her Majesty's Revenue and Customs
all have offices in the city.
Due to the economic recession of the late 2000s, Liverpool Council, along with other local authorities within the United Kingdom, has had a significant reduction in its budget. During the 2011/12 tax year, Liverpool has had a 22% reduction in its council budget amounting to a figure of £91m and, as a result, has announced that up to 1200 jobs may be lost during the year. It will also have to make a further £50m of savings during the 2012/13.
, Alliance & Leicester
, Royal Bank of Scotland
Group, HBOS
and the Bank of Ireland
either opening or expanding their sites, a number of major call centres have opened in recent years too and the professional advice sector.
Tourism is a major factor in the economy and this has led to a great increase in the provision of high quality services such as hotels, restaurants and clubs. The buildings of Liverpool also attract film makers, who regularly use Liverpool to double for cities around the world and making it the second most filmed city in the UK. Liverpool is also one of the few cities in the world where cruise liners can berth in the city centre, and from 2008 a significant number of ships will either set sail or call at Liverpool's cruise liner terminal, including the Grand Princess
, and the Queen Elizabeth 2
. Large naval ships coming in to dock also draw large crowds on sunny days. Liverpool and its boroughs have a large number of sandy beaches accessible by Merseyrail
, which prove popular in the summer months.
Liverpool's main shopping area consists of numerous streets and shopping centres. Amongst the larger predominantly retail orientated streets in Liverpool city centre are Church Street
, Lord Street
, Bold Street
and Mathew Street
. Liverpool One opened fully in October 2008 being the redevelopment of a large part of the postcode area L1—hence the name. It is also partly built on the old Chavasse Park
, but much of the park still remains. Previous to the opening of the Liverpool One complex, St. John's Shopping Centre
was the largest shopping centre in Liverpool, it still remains the largest covered shopping centre in the city. Clayton Square Shopping Centre
is also located in the very centre of the city as is Metquarter
, an upmarket shopping centre consisting primarily of boutique stores which opened in 2006. Another ambitious retail project for Liverpool city centre was also approved for construction in 2010, Central Village
will be built around Liverpool Central railway station
and Lewis's Department Store
. This will further enhance Liverpool's status as a major retail destination in the UK with it already being ranked in the national top five. New Strand Shopping Centre
and New Mersey Shopping Park
are two other large shopping complexes in the Liverpool Urban Area, in Bootle
and Speke
respectively.
has been helped by the existence of a relatively large computer game development community. Sony based one of only a handful of European PlayStation
research and development centres in Wavertree, after buying out noted software publisher Psygnosis. According to a 2006 issue of industry magazine 'Edge' (issue 162), the first professional quality PlayStation software developer's kits were largely programmed by Sony's Liverpool 'studio'. Other notable development studios include the Activision
-owned Bizarre Creations
, and Sony-owned Evolution Studios
.
plant where the Jaguar X-Type
and Land Rover Freelander
models are assembled. The X-Type ceased production in 2010 however, the new Range Rover Evoque is set to fill this gap when production begins in the Spring of 2011.
, which may see the creation of 17,000 jobs and £5.5bn invested in the vicinity over a 50 year period. This is coupled with a sister scheme on the other side of the River Mersey, called Wirral Waters
.
In recent years, the Port of Liverpool has seen somewhat of a revival, with both Japanese firm NYK
and Danish firm Maersk Line locating their UK headquarters to the city.
Liverpool
Liverpool is a city and metropolitan borough of Merseyside, England, along the eastern side of the Mersey Estuary. It was founded as a borough in 1207 and was granted city status in 1880...
, England. With a population of 442,300 within official city limits and over 1.3 million in its Larger Urban Zone, Liverpool is one of the largest cities in the United Kingdom and sits at the centre of the broader Merseyside
Merseyside
Merseyside is a metropolitan county in North West England, with a population of 1,365,900. It encompasses the metropolitan area centred on both banks of the lower reaches of the Mersey Estuary, and comprises five metropolitan boroughs: Knowsley, St Helens, Sefton, Wirral, and the city of Liverpool...
economic area, which is itself one of the two core economies of the North west of England.
GVA
| Year | Regional Gross Value Added |
|---|---|
| 2002 | 6,224 |
| 2003 | 6,595 |
| 2004 | 6,941 |
| 2005 | 7,247 |
| 2006 | 7,626 |
In 2006, the city's GVA
Gross value added
Gross Value Added ' is a measure in economics of the value of goods and services produced in an area, industry or sector of an economy...
was £7,626 million, providing a per capita figure of £17,489, which was above the North West average. After several decades of decline, Liverpool's economy has seen somewhat of a revival since the mid-1990s, with its GVA increasing 71.8% between 1995 and 2006 and employment increasing 12% between 1998 and 2006.
By sector, Liverpool's GVA is predominantly produced through service sector industries, with industry accounting for almost all of the rest.
| Year | Regional Gross Value Added | Agriculture | Industry | Services |
|---|---|---|---|---|
| 1995 | 4,394 | 3 | 950 | 3,440 |
| 2000 | 5,681 | 4 | 1,033 | 4,644 |
| 2003 | 6,595 | 6 | 953 | 5,636 |
The economy of Liverpool is beginning to recover from its long, post-World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
decline. Between 1995 and 2001 GVA per head grew at 6.3% annum. This compared with 5.8% for inner London and 5.7% for Bristol
Bristol
Bristol is a city, unitary authority area and ceremonial county in South West England, with an estimated population of 433,100 for the unitary authority in 2009, and a surrounding Larger Urban Zone with an estimated 1,070,000 residents in 2007...
. The rate of job growth was 9.2% compared with a national average of 4.9% for the same period, 1998-2002. However, Liverpool is still comparatively deprived; a 2001 report by CACI showed that Liverpool still had four of the ten poorest postcode districts in the country, and almost 30% of people aged 65 or over are without central heating.
Service sector
In common with much of the rest of the UK today, Liverpool's economy is dominated by service sector industries, both public and private. In 2007, over 60% of all employment in the city was in the public administration, education, health, banking, finance and insurance sectors.Public administration, Education and Health
Public Administration, Education and Health are combined, the single largest employment sector within Liverpool's economy, accounting for approximately 40% of all jobs in the city. Despite a recent fall in the number of jobs, the level of employment in these sectors remains higher than the average for the other core citiesEnglish Core Cities Group
The Core Cities Group is a coalition of some of England's major regional cities:*Birmingham - West Midlands*Bristol - South West England*Leeds - Yorkshire and the Humber*Liverpool - North West England*Manchester - North West England...
of England.
Liverpool is an important centre for public administration having offices from several government departments
Departments of the United Kingdom Government
Her Majesty's Government of the United Kingdom contains a number of Cabinet ministers who are usually called secretaries of state when they are in charge of Government departments called ministerial departments...
and non-departmental public bodies, in addition to local government
Liverpool City Council
Liverpool City Council is the governing body for the city of Liverpool in Merseyside, England. It consists of 90 councillors, three for each of the city's 30 wards. The council is currently controlled by the Labour Party and is led by Joe Anderson.-Domain:...
agencies. Agencies such as Identity and Passport Service
Identity and Passport Service
The Identity & Passport Service is an executive agency of the Home Office in the United Kingdom and became operational on 1 April 2006, succeeding the UK Passport Agency, after the passing of the Identity Cards Act 2006...
, Criminal Records Bureau
Criminal Records Bureau
The Criminal Records Bureau , is an Executive Agency of the Home Office, which provides wider access to criminal record information through its Disclosure service for England and Wales...
, and Her Majesty's Revenue and Customs
Her Majesty's Revenue and Customs
Her Majesty's Revenue and Customs is a non-ministerial department of the UK Government responsible for the collection of taxes and the payment of some forms of state support....
all have offices in the city.
Due to the economic recession of the late 2000s, Liverpool Council, along with other local authorities within the United Kingdom, has had a significant reduction in its budget. During the 2011/12 tax year, Liverpool has had a 22% reduction in its council budget amounting to a figure of £91m and, as a result, has announced that up to 1200 jobs may be lost during the year. It will also have to make a further £50m of savings during the 2012/13.
Banking, Finance and Insurance
The banking, finance and insurance sectors are one of the fastest growing areas of Liverpool's economy with a 5.3% increase in jobs in these areas 2006/07. Major private sector service industry concerns have also invested in Liverpool especially the financial services sector with Barclays, JPMorgan, Abbey NationalAbbey National
Abbey National plc was a UK-based bank and former building society, which latterly traded under the Abbey brand name. It became a wholly owned subsidiary of Grupo Santander of Spain in 2004, and was rebranded as Santander in January 2010, forming Santander UK along with the savings business of the...
, Alliance & Leicester
Alliance & Leicester
Alliance & Leicester was a former UK-based bank and PLC, which in later years operated as a trading name of Santander UK before being rebranded as Santander. Alliance & Leicester was legally acquired in May 2010 by Santander UK, and was fully incorporated by 2011...
, Royal Bank of Scotland
Royal Bank of Scotland
The Royal Bank of Scotland Group is a British banking and insurance holding company in which the UK Government holds an 84% stake. This stake is held and managed through UK Financial Investments Limited, whose voting rights are limited to 75% in order for the bank to retain its listing on the...
Group, HBOS
HBOS
HBOS plc is a banking and insurance company in the United Kingdom, a wholly owned subsidiary of the Lloyds Banking Group having been taken over in January 2009...
and the Bank of Ireland
Bank of Ireland
The Bank of Ireland is a commercial bank operation in Ireland, which is one of the 'Big Four' in both parts of the island.Historically the premier banking organisation in Ireland, the Bank occupies a unique position in Irish banking history...
either opening or expanding their sites, a number of major call centres have opened in recent years too and the professional advice sector.
Tourism
Grand Princess
Grand Princess is a Grand-class cruise ship owned by Princess Cruises. Built in 1998 by Fincantieri Cantieri Navali Italiani in Monfalcone , Italy, at a cost of approximately US$450 million, she was the largest and most expensive passenger ship ever built at the time...
, and the Queen Elizabeth 2
RMS Queen Elizabeth 2
Queen Elizabeth 2, often referred to simply as the QE2, is an ocean liner that was operated by Cunard from 1969 to 2008. Following her retirement from cruising, she is now owned by Istithmar...
. Large naval ships coming in to dock also draw large crowds on sunny days. Liverpool and its boroughs have a large number of sandy beaches accessible by Merseyrail
Merseyrail
Merseyrail is a train operating company and commuter rail network in the United Kingdom, centred on Liverpool, Merseyside. The network is predominantly electric with diesel trains running on the City Line. Two City Line branches are currently being electrified on the overhead wire AC system with...
, which prove popular in the summer months.
Retail
Church Street, Liverpool
Church Street is Liverpool's main shopping area, lying between Bold Street to the East and Lord Street to the West. It takes its name from St Peters a church consecraited in 1704 and demolished in 1923. Liverpool One opened fully in October 2008 being the redevelopment of a large part of the...
, Lord Street
Lord Street, Liverpool
Lord Street is one of the main streets in central Liverpool, England that forms the city's main shopping district. The street is relatively short at less than 300 metres in length, it joins on to Church Street to the east and James Street alongside Derby Square and the Queen Elizabeth II Law Courts...
, Bold Street
Bold Street, Liverpool
Bold Street is a street in Liverpool, England. It is known for its cafés and for the Church of St Luke, which is situated at the top end. The bottom end leads into the area surrounding Clayton Square, which is part of the main retail district of central Liverpool. The bottom end contains more...
and Mathew Street
Mathew Street
Mathew Street is a street in Liverpool, England, best-known worldwide as the location of the Cavern Club, where The Beatles played on numerous occasions in their early career...
. Liverpool One opened fully in October 2008 being the redevelopment of a large part of the postcode area L1—hence the name. It is also partly built on the old Chavasse Park
Chavasse Park
Chavasse park is an open space in the city centre of Liverpool, England, United Kingdom. It was named in commemoration of the Chavasse family; Francis and his twin sons Christopher Maude Chavasse , and Noel Godfrey Chavasse Chavasse park is an open space in the city centre of Liverpool, England,...
, but much of the park still remains. Previous to the opening of the Liverpool One complex, St. John's Shopping Centre
St. John's Shopping Centre
St John's Shopping Centre is the largest covered shopping centre in the city of Liverpool, located in the heart of the city since 1969 and boasting over 100 retailers...
was the largest shopping centre in Liverpool, it still remains the largest covered shopping centre in the city. Clayton Square Shopping Centre
Clayton Square Shopping Centre
Clayton Square Shopping Centre is an inner-city shopping centre located in Liverpool, England. It is in close proximity to Liverpool Lime Street and Liverpool Central railway stations. It is the city's fourth largest shopping centre behind Liverpool One, St. John's Shopping Centre and Metquarter...
is also located in the very centre of the city as is Metquarter
Metquarter
Metquarter is an luxury shopping centre consisting primarily of boutique stores located in central Liverpool, England.-History:The current Metquarter building previously served as Liverpool's General Post Office, and was probably the finest post office in the UK, reminiscent of a French chateau...
, an upmarket shopping centre consisting primarily of boutique stores which opened in 2006. Another ambitious retail project for Liverpool city centre was also approved for construction in 2010, Central Village
Central Village, Liverpool
Central Village is shopping, leisure, commercial and residential development that is currently under-construction in Liverpool, England, United Kingdom. The complex is being built over Liverpool Central railway station, the UK's second busiest underground station outside of London...
will be built around Liverpool Central railway station
Liverpool Central railway station
Liverpool Central railway station is a railway station in Liverpool, England, and forms the central hub of the Merseyrail network, being on both the Northern Line and the Wirral Line. In the years 2008/09, Liverpool Central station was shown to be the busiest station in Liverpool, despite being...
and Lewis's Department Store
Lewis's
Lewis's was a large department store in Liverpool city centre. It was formerly the flagship of a chain of department stores under the Lewis's name, that operated from 1856 to 1991, when the company went into administration. Several stores in the chain were bought by the company Owen Owen and...
. This will further enhance Liverpool's status as a major retail destination in the UK with it already being ranked in the national top five. New Strand Shopping Centre
New Strand Shopping Centre
The New Strand Shopping Centre, known locally as 'The Strand', is the main shopping centre or mall in Bootle, Merseyside, England. Built and opened during the 1960s, it was part of a larger Bootle redevelopment during this period, which was also complemented by the establishment of the Girobank...
and New Mersey Shopping Park
New Mersey Shopping Park
New Mersey Shopping Park is a major out of town retail park located in Speke, Liverpool, England. It opened in 1985.With 40 stores and services, New Mersey Park is one of the largest complexes of its kind in the country...
are two other large shopping complexes in the Liverpool Urban Area, in Bootle
Bootle
Bootle is a town within the Metropolitan Borough of Sefton in Merseyside, England, and a 'Post town' in the L postcode area. Formally known as Bootle-cum-Linacre, the town is 4 miles to the north of Liverpool city centre, and has a total resident population of 77,640.Historically part of...
and Speke
Speke
Speke is an area of Liverpool, Merseyside, England, close to the boundaries of the Metropolitan Borough of Knowsley. It is south east of the city centre and to the west of the town of Widnes....
respectively.
Knowledge economy
Growth in the areas of New MediaNew media
New media is a broad term in media studies that emerged in the latter part of the 20th century. For example, new media holds out a possibility of on-demand access to content any time, anywhere, on any digital device, as well as interactive user feedback, creative participation and community...
has been helped by the existence of a relatively large computer game development community. Sony based one of only a handful of European PlayStation
PlayStation
The is a 32-bit fifth-generation video game console first released by Sony Computer Entertainment in Japan on December 3, .The PlayStation was the first of the PlayStation series of consoles and handheld game devices. The PlayStation 2 was the console's successor in 2000...
research and development centres in Wavertree, after buying out noted software publisher Psygnosis. According to a 2006 issue of industry magazine 'Edge' (issue 162), the first professional quality PlayStation software developer's kits were largely programmed by Sony's Liverpool 'studio'. Other notable development studios include the Activision
Activision
Activision is an American publisher, majority owned by French conglomerate Vivendi SA. Its current CEO is Robert Kotick. It was founded on October 1, 1979 and was the world's first independent developer and distributor of video games for gaming consoles...
-owned Bizarre Creations
Bizarre Creations
Bizarre Creations was a video game development studio, best known for their racing titles: Metropolis Street Racer and the followup Project Gotham Racing series . The company has also developed games in other genres, including the Geometry Wars arcade series, plus third-person shooters Fur...
, and Sony-owned Evolution Studios
Evolution Studios
Evolution Studios Ltd. is a British video game developer. The company was founded in 1999 by Martin Kenwright and Ian Hetherington , following the purchase of DID's publisher Ocean Software by Infogrames...
.
Manufacturing sector
Car-manufacturing also takes place in the city at the HalewoodHalewood
Halewood is in Merseyside, England and is located in the Metropolitan Borough of Knowsley. The district lies near Liverpool's southeastern boundary, bordered by the suburbs of Hunts Cross and Woolton....
plant where the Jaguar X-Type
Jaguar X-Type
The X-Type is a compact executive car manufactured and marketed for model years 2001-2009 by Jaguar Cars. The smallest of the Jaguar model range, the X-type was marketed in saloon and wagon variants and was the only estate ever manufactured in series production by the company...
and Land Rover Freelander
Land Rover Freelander
The Land Rover Freelander is a compact crossover SUV made by Land Rover.The current generation is sold as the LR2 in North America and as the Freelander 2 in Europe...
models are assembled. The X-Type ceased production in 2010 however, the new Range Rover Evoque is set to fill this gap when production begins in the Spring of 2011.
Port of Liverpool
The owner of Liverpool's port and airport, Peel Holdings, announced on 6 March 2007 that is had plans to redevelop the city's northern dock area with a scheme entitled Liverpool WatersLiverpool Waters
Liverpool Waters is a large scale £5.5bn development that has been proposed by the company Peel Holdings in the Vauxhall area of Liverpool, Merseyside, England. The development will make use of a series of presently derelict dock spaces at Central Docks, with much of the docks in a World Heritage...
, which may see the creation of 17,000 jobs and £5.5bn invested in the vicinity over a 50 year period. This is coupled with a sister scheme on the other side of the River Mersey, called Wirral Waters
Wirral Waters
Wirral Waters is a large scale £4.5bn development that has been proposed by the company Peel Holdings for Birkenhead, on the Wirral Peninsula, England...
.
In recent years, the Port of Liverpool has seen somewhat of a revival, with both Japanese firm NYK
Nippon Yusen
Japan-based or NYK Line, is one of the largest shipping companies in the world. It is a core Mitsubishi company. The company has its headquarters in Chiyoda, Tokyo.-1870-1900:...
and Danish firm Maersk Line locating their UK headquarters to the city.