Our story
In the 10 years after the 2008/09 recession, Coventry & Warwickshire was the fastest-growing local economy in England, with economic output (measured in real GVA) growing by 33.4% between 2008/09 and 2016/17. This was driven significantly by major investments in Research & Development and production in the automotive sector and its supply chain, as well as continued expansion of the professional services sector and creative economy. Coventry had the fastest growing population of UK cities from 2009-2019 and its economic progress was exemplified by the award of UK City of Culture for 2021, being a host venue for the 2022 Commonwealth Games, and being part of the West Midlands 5G Test Bed – the first in the UK.
However, the local economy has encountered significant challenges in recent years. After growth of the Coventry & Warwickshire economy slowed to 1.24% growth (the lowest of all local economies) in 2018/19, the COVID-19 Pandemic had a severe impact on the economy, with the UK economy contracting by 9.9% in 2020 and the West Midlands estimated to have experienced the greatest contraction of all regions. This had a major impact on the local labour force, with the claimant count rising from 7,525 (3.0%) recorded in January 2020 to 16,490 (6.6%) in December 2020 (the peak during the pandemic). Longstanding inequalities across Coventry have been exacerbated, with 14.4% of neighbourhoods ranked in the most deprived 10% in England and life expectancy varying by 10.7 years for men and 8.3 years for women between the city’s most affluent and most deprived neighbourhoods. The Council played an important role in helping to protect businesses and jobs, awarding over £80m in Government COVID-19 grants to over 4,500 Coventry businesses either mandated to close or adversely affected by public health restrictions, and ensuring that over 7,300 local businesses accessed over £300m in Government loans.
Further challenges have emerged in 2021 and 2022, with inflation (driven heavily by energy and component cost increases), labour shortages, and new regulations and document requirements for UK-EU trade post-Brexit all of which have slowed economic recovery, and the Bank of England’s forecast of August 2022 projecting a recession for the UK during Q4 2022 and throughout 2023. It is therefore crucial that Coventry is able to deliver a strong and sustainable economic recovery from this challenging economic climate, and that foundations are put in place for longer-term economic prosperity. This includes building on the unique opportunities presented by the opening and roll-out of the £136m UK Battery Industrialisation Centre, maintaining Coventry’s track record of leading edge innovation, the potential to secure a Gigafactory at Coventry Airport and subsequent investment in the electric vehicle and battery technology supply chains. There are also unique opportunities presented by the legacies of UK City of Culture 2021 and the 2022 Commonwealth Games, continuing the transformation of Coventry City Centre through the Friargate and City Centre South schemes, and the city’s outstanding digital and transport connectivity. Through continued work with our partners, we aspire for Coventry in five years’ time to be a:
- Green City, both through industrial innovation and sustainable transport
- Leading edge city in Advanced Manufacturing & Engineering industries
- Cultural City, particularly through expanded creative and tourism sectors
- City providing high employment levels and good quality jobs
- City providing opportunities for all through strong universities, and education & skills ecosystems
- City with reduced health, economic and social inequalities.
Alignment with other local strategies
This Economic Development Strategy is one of the key strategies for delivering the One Coventry Plan’s approach of enabling people to live their best lives in a vibrant and prosperous city. The actions within this strategy will be central to achieving the One Coventry Plan objective of “Increasing the Economic Prosperity of the City and Region”. They will also contribute significantly to achieving the objectives of “Improving Outcomes and Tackling Inequalities in Communities” and “Tackling the Causes and Consequences of Climate Change”. As such, this strategy is therefore closely aligned with many other strategies that feed into the One Coventry Plan, as well as feeding into the development of Coventry’s Local Plan.