Investment News | 15 December 2020
The schemes that will boost Derby's recovery in 2021
Derby’s economy is expected to bounce back stronger than anywhere in the East Midlands, according to a new report.
The latest UK Powerhouse report, published by law firm Irwin Mitchell and the Centre for Economics and Business Research (Cebr), predicts that the city’s annual GVA growth in the second quarter of next year will be 25%, ahead of Leicester (24.9%) and Nottingham (23.2%).
The report, which assumes a substantial proportion of the UK population will have received a Covid-19 vaccine by the middle of next year, states that Derby’s economic output is expected to increase by 7.3% to £6.7 billion by the final quarter of 2021, with employment moving back into positive territory at 5.5% growth.
John Forkin, managing director of Marketing Derby, said: “The reports shows that the fundamentals of our economy remain strong and with the vaccine roll out, Derby is well placed to overcome the current challenges and take full advantage of the predicted recovery in 2021.
“The city already has a plan in place, a priority of which is to diversify the city centre economy and here at Marketing Derby we have noticed a definite pick-up in investor interest.”
Despite the coronavirus pandemic, new schemes and investments have been announced this year, which stand the city and county in good stead going into 2021.
Meanwhile, existing projects have been progressing, despite the challenges posed by lockdown restrictions and other measures to prevent the spread of the virus.
Many new projects have received support from the Government’s Getting Building Fund, via the D2N2 Local Enterprise Partnership.
For example, plans to diversify the city and county’s economy include the £300 million SmartParc scheme – a 140-acre campus on the former Celanese site – which could create around 4,500 jobs.
Announced in the summer, SmartParc will combine world-class food production facilities with shared utilities, amenities and services to provide a highly sustainable production base for food manufacturers.
Also this year, a £6.85 million investment to help create a new permanent home for the Nuclear Advanced Manufacturing Research Centre on Infinity Park Derby, creating 70 new roles.
The scheme was submitted by Derby City Council and supported by the D2N2 LEP as a priority for the area.
The site will also become a base for the University of Derby’s Institute of Innovation in Sustainable Engineering.
Meanwhile, Wavensmere Homes continues to make rapid progress on its 800-home Nightingale Quarter scheme in the city centre – while the neighbouring Castleward Urban Village regeneration scheme this year, by Compendium Living, received a £1.5 million boost from the D2N2 LEP to go towards the construction of a primary and nursery school for families moving into the new development.
There has also been a number of developments and investments this year to boost the rest of Derbyshire.
They include the stunning Buxton Crescent Health Spa Hotel, which opened this year following a £68 million refurbishment and renovation.
Thanks to one of the largest grants ever awarded from the National Lottery Heritage Fund and significant support from other stakeholders, the new hotel blends the outstanding history of the 18th century exterior with modern comforts and will be a significant addition to Derbyshire's visitor economy offer.
The D2N2 LEP’s Local Growth Fund has been key to boosting many new developments across Derbyshire.
For example, this year it allocated £425,000 from the fund towards the refurbishment of Toll Bar House, in Ilkeston.
The funding will allow Erewash Borough Council the opportunity to upgrade, redevelop, and revitalise the art-deco styled building, leading to the creation of over 90 jobs and up to 22 separate office units.
D2N2 also approved an investment of £650,000 towards the Revitalising the Heart of Chesterfield project, supporting the creation of 66 jobs, as well as safeguarding 80 jobs.
And its funding is also supporting many key infrastructure projects, unlocking development land at sites including at Ashbourne and Swadlincote.
