A brief report on the economy of the district of Lancaster

Lancaster’s economy is in a promising position, having improved substantially since 2015. The district enjoys an improving employment position; approaching 10% growth in micro business formation, the delivery of strategic projects completed and underway and stakeholders exhibiting increasing confidence to invest. Lancaster performs well across employment and skills measures, with salaries outperforming the North West average. The unemployment rate has fallen significantly since 2015 and the local population is well skilled with high earning potential. The area is renowned as a centre for academic excellence; Lancaster University is classified as world-class, being ranked 9th in the UK university league tables. The university will undoubtedly play a key role in the future growth of Lancaster’s economy, having ambitious plans for growth and investment.

Despite these encouraging signs, Lancaster does face a few challenges. The district faces a demographic challenge, since it has an ageing workforce and low graduate retention, with most students from Lancaster University leaving the city upon graduation. There is also a need to diversify Lancaster’s employment base, since the economy is dominated by larger employers; enterprise should be encouraged to make the economy more resilient. Another main challenge is enhancing Lancaster’s profile - the city is not well represented in the Northern Powerhouse narrative. Developing its profile in this scheme could mean that Lancaster would attract more government investment and consequently benefit from greater growth and employment.

That being said, Lancaster has excellent prospects for economic growth. A central strength of the district is its role as a leading energy centre. The coastal town of Heysham is well- established as a centre of energy generation and supply, offering opportunities for growth. The UK’s transition to a low-carbon economy could further enhance Lancaster’s profile as a prominent energy centre if the district capitalises on the resource of off-shore wind. New connections and infrastructure will spread economic growth across the district - a new Heysham-M6 link road has been completed, which should make sites in Heysham more appealing to businesses. The district also boasts a phenomenal visitor and cultural economy which is considered central to its future success. Lancaster has recently become one of ‘England’s Heritage Cities’ and the area is home to two National Parks. With visitor numbers to Lancaster growing year-on-year, the visitor economy is going to be a major contributor to the economic growth of the district in years to come.