Sheffield Prepared for Ecomonic Change
Tuesday 9 September 2008
Sheffield will manage to minimise any impact of the economic downturn and ensure it is in a strong position when the upturn comes. That was the message from the City’s leaders today.
Sheffield First Partnership, whose main purpose is to make Sheffield a successful city and help create better lives for people who live here, will present the city’s current economic status at their board meeting later this week (Wednesday 10 September).
Although the UK is facing tougher economic conditions, Sheffield is faring well so far. Like the whole of the UK, Sheffield is subject to national changes such as restrictions in finance markets and rising inflation, but the city is in a comparatively strong position to manage the effects of changing economic circumstances.
Jane Brown, Director of Sheffield First Partnership said: “What the Partnership is keen to achieve is to ensure we do not lower our ambition for the city, but take realistic account of the changing circumstances. We cannot change the world economic environment but we can manage the impact and risks on local people, businesses and the city's future success."
Over the past decade Sheffield’s economy has fundamentally changed to a position where it is less exposed, although not immune, to slowdown. Today’s economy has a spread of employment across private, public, service and manufacturing sectors.
The City’s manufacturers are stronger and used to trading in difficult conditions. The falling value of the pound will also help to boost exports and bring money into the local economy.
Councillor Paul Scriven, Leader of Sheffield City Council said: “I want to reassure local people that we do understand the issues affecting household budgets. We know that businesses and residents may be facing tougher times but we are doing everything we can to ensure that services adjust to the economic climate. We know things for some will become more difficult but we certainly aren’t just going to sit and wait, we are working to minimise the impact on Sheffield. We recognise that some local people will be feeling the impact of rising prices and the credit crunch more than others. We are changing our services to respond to resident concerns and ensure we can give local people the advice, information and support they need for them and their families.”
Businesses are managing increasing costs, slowing demand and poor access to finance for investment. The partnership is working to ensure that the needs of business are understood and that they have clear routes to the support available to them.
Nigel Tomlinson, Chief Executive of Sheffield Chamber of Commerce and Industry said: "Like any other economy we face significant challenges and risks in the current environment. Our economy has successfully diversified over the last decade to provide a stronger balance - but we will not be immune from the effects of the economic downturn and resulting market re‑adjustment. Therefore, the Chamber of Commerce is pleased to support the Partnership in taking a pro-active approach to anticipate and agree what needs to be done to ensure the city's continued growth and position Sheffield to exploit a future upturn."
Sheffield also holds a relatively strong position in terms of regeneration and development as the City Centre residential and office markets are not as ‘overbuilt’ as other cities. As such, although developers are less confident in the market generally, Sheffield regeneration schemes on site are continuing to completion.
Sheffield housing market is slowing with less houses being sold. However at present house prices are not falling as fast as elsewhere in the UK.