Derby Nottingham Metro could bring £11 billion economy boost

Closer joint working across the Derby and Nottingham Metro area could provide an £11 billion boost to the local economy by 2030 resulting in up to 250,000 new jobs, a new report says.

The report, by national consultancy Metro Dynamics, says there is a powerful case for formal collaboration between local authorities and businesses across an area greater than just the two cities in order to improve economic prosperity for the benefit of local people.

The report highlights the critical importance of local authorities and businesses across the wider area working closely to seize emerging new trading opportunities for the metro area and respond to any immediate Brexit-related economic shocks.

The benefits of the collaboration according to the report include: giving the Metro area a more powerful voice, so it can respond to the challenges and opportunities of the post-Brexit economy and engage with the Midlands Engine and UK government; enabling a more strategic approach to generating inclusive growth, through combined approaches to education and skills improvement; ensuring that the area will be able to reap the full economic, connectivity and inclusive growth benefits of Hs2 at Toton; maximising the major growth opportunities which lie in economic and location intersections across the area; and overcoming the challenges of Derby and Nottingham’s tight boundaries and building on the complementary relationships they have with the local authority areas around and between them.

The report suggests a definition for this area which includes the urban districts adjacent and between the two cities - Amber Valley, Ashfield, Broxtowe, Erewash, Gedling, Rushcliffe and South Derbyshire. The population of 1.4 million would be the fifth largest in the UK.

Although the study is independent and its recommendations not binding, both leaders agree it provides a good starting point for wider discussion and welcome the report.

Ben Lucas, managing director of Metro Dynamics, said: “The more you look at Derby and Nottingham, the more apparent their underlying economic interdependence becomes. 40,000 people commute regularly between them and over 400,000 people commute to work in the wider metro area. Three quarters of the people who live in the area, also work in the area.

“Our report makes a strong case for more collaboration to drive inclusive growth. Whilst the two cities will be critical to this, many future economic opportunities lie in the broader metro area.”

Ranjit Bandit, leader of Derby City Council, said: “We launched our Metro Strategy earlier this year which gave the two cities a framework to pursue joint working. An example of this is our shared gym and swim offer for residents using our council leisure facilities.

“This report however really challenges us to take a more ambitious step and work purposefully across a larger metro area with a greater range of partners. Metro Dynamics present a well-argued case with strong evidence that we really could achieve more. While clearly not without challenges, I think it is an exciting development and hope Derby and Nottingham residents will share that view.”

Jon Collins, leader of Nottingham City Council, said: “This report underlines the major benefits closer collaboration across the metro area can bring.

“One issue it highlights is the considerable underfunding we have experienced as an area in terms of government spending and infrastructure investment.

“As the report states, although we are a similar size economically to the Greater Manchester city region, the wider Derby-Nottingham metro area receives lower government spending per person. If spending were equivalent to Manchester we would gain an additional £1.1 billion.

“We will consider the report’s findings and recommendations in depth and discuss with neighbours and partners how we can take a combined approach, going beyond political and organisational interests and boundaries to make the most of the opportunities presented.”