Economic conditions play a crucial role in business success, making it essential to consider factors like GDP growth and the financial stability of an area before taking the plunge into a world of entrepreneurship.
The UK economy has faced a turbulent few years, experiencing fluctuations in GDP growth, rising prices, and shifting consumer spending habits shaping the business landscape – the Consumer Prices Index (CPI) rose by 3.0% in the 12 months to January 2025, up from 2.5% in the 12 months to December 2024.
To better understand the economic opportunities for businesses across the country, as part of their report looking into the best places to start a business in the UK, small business comparison site, Bionic, has revealed the places in the UK with the fastest and slowest growing economies.
With an impressive 49.6% GDP growth since 2020, North Lincolnshire has secured the top spot as the UK’s fastest-growing economy – 32.6% above the national UK average (17.0% between 2020 and 2022).
This remarkable expansion has been fuelled by North Lincolnshire Council’s commitment to economic development. Since 2018, the council has allocated over £61 million in grant funding to support businesses and invested £5.47 million from the UK Shared Prosperity Fund to enhance communities, boost local businesses, and develop workforce skills across the area.
Lambeth has the second-fastest-growing economy in the UK
With a 38.8% GDP growth since 2020, Lambeth has emerged as one of the UK’s fastest-growing economies. This growth is driven by initiatives like the Economic Resilience Strategy, launched by Lambeth Council in February 2022, which tackles economic inequality while promoting growth in sectors such as medical technology, life sciences, digital, and low-carbon industries.
Lambeth Council’s aim of ensuring sustainable, inclusive growth and focusing on creating jobs, providing skills training, enhancing affordable housing, and improving public spaces for the area highlights the strength of Lambeth’s economy and the local authority as a whole.
South Derbyshire has the SLOWEST economic growth in the UK
South Derbyshire’s economy has struggled to recover since the COVID-19 pandemic, with GDP growth declining by 10.9% since 2020, making it the slowest in the UK.
While COVID-19 impacted the entire country, South Derbyshire and the wider East Midlands were hit harder than most, with the region experiencing a 15% drop in output in 2020.
Key local industries, such as food and beverage services and wholesale and retail, saw steep declines of 85% and 63% in output, respectively, and 32.0% of businesses reported major losses in turnover due to COVID-19 restrictions – 36% experienced a drop of up to 50%.
