While London grabs headlines and Manchester boasts about its renaissance, Leeds has been quietly transforming itself into an economic juggernaut that’s now poised to outperform the rest of the UK. New forecasts reveal Yorkshire’s largest city is no longer just keeping pace with national growth trends—it’s setting them.
The Numbers That Matter
EY’s latest Regional Economic Forecast delivers compelling evidence of Leeds’ ascendancy: the city’s Gross Value Added (GVA) is projected to grow at 1.7% annually between 2025-2028, edging ahead of the national average of 1.6%.
This might seem like a marginal difference, but the compounding effect means Leeds’ economy will be a staggering £2.5 billion larger by 2028 than it is today. For context, that’s equivalent to adding the entire economic output of a small city to Leeds’ balance sheet in just three years.
Tech Boom Leading the Charge
At the heart of this growth story is Leeds’ rapidly maturing technology sector. The information and communication industry is forecast to expand by 2.6% annually—the fastest growth rate of any sector in the city’s diverse economic portfolio.
“Leeds has established itself as the North’s most important tech hub outside Manchester,” explains Dr. Martina Shaw, regional economics specialist at Yorkshire University. “What sets Leeds apart is how it combines digital innovation with its established strengths in financial and professional services.”
Indeed, professional, scientific, and technical services are expected to grow at 2.2% per year, outpacing most other sectors and cementing Leeds’ reputation as a professional services powerhouse.
More Jobs, Better Opportunities
The economic expansion translates directly into job creation, with employment forecast to grow by 0.8% annually—again outstripping the UK average of 0.7%. This seemingly small percentage difference represents thousands of additional jobs for local residents, particularly in high-value sectors that offer above-average salaries.
Tech companies and professional services firms are leading the recruitment drive, but they’re not alone. Construction employment is surging thanks to ambitious urban regeneration. The South Bank Leeds project alone is set to transform the physical landscape of the city while creating more than 35,000 jobs by 2028.
Green Growth: The Sustainability Factor
Leeds isn’t just growing—it’s growing greener. Investments in renewable energy infrastructure are expected to yield 2.6% annual growth in this sector, reflecting both commercial opportunity and environmental commitment.
“The transition to sustainable energy isn’t just about environmental responsibility—it’s where the economic momentum is,” says Claire Richardson, head of sustainability at Leeds Chamber of Commerce. “Leeds businesses are positioning themselves at the forefront of this transition.”
Challenges on the Horizon
Despite the promising outlook, Leeds faces headwinds that could hamper its impressive trajectory. Rising energy costs are squeezing manufacturing margins, and skills shortages threaten to create bottlenecks in high-growth sectors.
Policymakers face crucial decisions about infrastructure investment and skills development that will determine whether Leeds can maintain its competitive edge. Transport connectivity, both within the city and to other northern hubs, remains a particular concern for business leaders.
From Mill Town to Digital Powerhouse
Leeds’ economic story is one of remarkable reinvention. A city once defined by wool, flax and engineering has transformed itself into a center for innovation, financial services, and digital technology.
The Victorian mill buildings that once housed textile workers now contain fintech startups and creative agencies. This blend of heritage architecture and forward-thinking enterprise gives Leeds its distinctive character—and perhaps its economic resilience.
The Investment Opportunity
For investors looking beyond the overheated London market, Leeds presents a compelling case. Commercial property yields remain attractive compared to the capital, while the growing economy provides confidence in future returns.
“Leeds offers what investors increasingly seek: growth potential combined with stability,” explains Jonathan Park, director at Northern Investment Partners. “The city’s diverse economic base means it’s not overly reliant on any single sector, which provides a natural hedge against market volatility.”
Looking Ahead: Leeds in 2028
By 2028, Leeds will be a larger, more prosperous, and more influential city than it is today. Its skyline will be transformed by the South Bank development, its economy enriched by thousands of new tech jobs, and its reputation enhanced as one of the UK’s most dynamic urban centers.
For a city that has sometimes lived in the shadow of Manchester and Birmingham, Leeds’ economic data tells a clear story: Yorkshire’s capital is stepping into the spotlight as a national growth leader.
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*Sources: EY Regional Economic Forecast, Yorkshire Post, Yorkshire Times, BDaily, AspenWoolf*
