A summary of the 2024 to 2027 Brighton & Hove Economic plan and a link to download the full report.
This evidence base is an important part of developing a new citywide Economic Plan for Brighton & Hove. It is a mirror to the city and ensures that there is a robust evidence base that can feed into the policymaking of organisations across the city, including the council. This evidence base also allows organisations to evaluate the impact of their work in supporting communities and the local economy.
Extensive consultation was a key part of producing the Economic Plan. Widespread consultation with private, public-sector partners and community organisations helped better understand the effect of broader external economic challenges on our city, its businesses and residents.
There is much to celebrate in the city.
By traditional economic measures, Brighton & Hove is performing well. Productivity and number of jobs in the city have both grown significantly since 2018. The city also has a vibrant small business base, with jobs and business numbers increasing in many sectors. Digital (+40%) and creative industries (+38%) have seen the largest proportional increases in jobs.
External research (as contained within the evidence base) has also shown that Brighton & Hove:
has some of the best conditions for investment of anywhere outside of London and needs to benefit from this
is the 5th best city in which to live and work in the country – highlighting the importance of nature
is the 5th best city in which to start a business- recognising the spirit and work of innovation and entrepreneurs
However, there is a wider picture across our city.
Although we have seen a significant increase in jobs in the city, many of these are in low-paying or insecure work. Alongside the impact of inflation and the cost-of-living crisis; growth in low-paid work has created a more two-tier economy.
This has become more pronounced since the pandemic:
Brighton & Hove’s labour market appears strong, but there are significant inequalities – particularly beyond the city centre; with more than 30% of residents in some areas having no qualifications.
9% of residents are earning below the national living wage. After accounting for inflation, residents are on average £2,000 worse off per year than in 2011.
This is reflected in housing affordability – a major challenge. For an individual earning an average income and renting a one-bed flat; most parts of the city would take up more than 30% of their pay.
In compiling the plan, the evidence collected on our local economy was stark. On a city-wide basis, average household earnings are almost the same as the national level (£30,000 per year). However, in some communities those earnings are well below the national average.
The report also confirmed other inequalities. In Brighton & Hove, there are neighbourhoods that rank among the worst nationally for access to healthy and affordable food and GP services. Overall wages have not kept pace with inflation in recent years, which means residents are actually worse off in real terms than they were in 2011. Women’s wages remain below men’s and the gap has widened in the last 2 years.
The evidence base recognises the changing context over the last 5 years and has helped steer our new citywide Economic Plan towards how Brighton & Hove can be more competitive, fairer and greener.
We have many strengths that we need to celebrate more.
However, the route to a more prosperous Brighton & Hove will not solely come from consolidating on our key sectors or by backing our many emerging strengths.
Supporting access to education and skills will be crucial as will be widening participation in new and more attractive ways.
It important that the city seeks balance, focusing upon both the economic opportunities, as well as tacking inequality.