Business

London’s grip on UK growth loosens as regional hubs step forward

London’s central role in the UK economy faces a visible check, as new analysis from data scientist Tom Forth points to faster momentum across a wider set of c

By Alex Draeth | 21 May 2026
London’s grip on UK growth loosens as regional hubs step forward

London’s central role in the UK economy faces a visible check, as new analysis from data scientist Tom Forth points to faster momentum across a wider set of cities. The shift shows up in company expansions, digital hiring and research activity in Manchester, Leeds, Birmingham, Bristol, Glasgow and Cambridge. While London remains the largest centre for finance, media and technology, the map of high value work looks more balanced than a decade ago. The direction matters for business planning. Marketers now consider more granular regional reach. Employers review office footprints and talent pipelines beyond the capital. Technology buyers see deeper supplier networks across the country. Policy changes on regional growth, digital markets and transport also shape the outlook.

Forth set out this view this week in an online note, highlighting activity in northern England, the Midlands and the devolved nations. The analysis focuses on where jobs, skills and investment now concentrate and how that changes commercial decisions.

Regional clusters gather pace beyond the capital

Published figures over the past few years show steady growth in several regional city regions. Advanced manufacturing has deepened in the Midlands and the North, with engineering, vehicle technology and materials research building on existing bases. The life sciences corridor around Cambridge and the North West continues to attract research talent and laboratory space. Digital services and game studios in the North West and Scotland have expanded teams, supported by local universities that supply technical graduates.

London still produces the largest share of gross value added, but recent ONS data shows faster year on year growth in some regions during the recovery from the pandemic shock. City regions that invested in skills, research partnerships and transport links report higher rates of new firm formation and a broader mix of sectors. Employers also cite lower office costs and access to graduates as reasons to scale teams outside the capital.

Marketing budgets follow audiences across more cities

As the population and spending power spread across city regions, marketing teams now place more budget in local and regional channels. Brands plan out of home campaigns in transport corridors and city centres outside London with greater frequency. Retailers and hospitality groups run more city specific digital promotions tied to store openings, events and local product ranges.

Digital media buying also reflects this shift. Marketers segment activity by postcode and local intent and test creative that fits regional culture and news cycles. Measurement now includes city level brand search, footfall, and store conversion, alongside national reach. This places content production and media planning closer to regional teams and partners with local knowledge.

Search and online visibility adapt to changing discoveries.

Search behaviour continues to evolve. People look for local services, events and inventory with more precise queries. Search platforms highlight map listings, reviews and local business profiles more prominently for many intents. Brands that operate across several cities face a heavier workload to maintain accurate listings, manage reviews, and update opening times and stock information.

At the same time, search providers have begun to present machine generated summaries alongside results for certain queries. This change can reduce clicks to individual sites for basic questions, and it rewards clear, well structured content that answers common tasks. Organisations improve technical foundations, mark up content with structured data, and publish location pages that help people find the right branch or service. These steps support both visibility and user experience across regions.

Artificial intelligence moves from pilot to practice

Use of artificial intelligence in UK businesses has shifted from trials to more regular use in several functions. Official data published in 2022 and updated in subsequent surveys showed growing adoption across administration, customer service, analytics and software development. Larger organisations led early deployment, but lower cost tools have made automation and assisted workflows more accessible to smaller firms and regional businesses.

This matters because technology capability is no longer concentrated in London. Regional technology clusters support adoption through local consultancies, university partnerships and specialist suppliers. Companies in manufacturing use AI for maintenance and production planning. Professional services apply it to research and workflow management. Retailers use predictive tools for inventory and customer engagement.

Regional ecosystems increasingly influence where these projects happen. Firms often choose locations where they can recruit technical talent, access incubators and work with nearby universities. Flexible working patterns have also reduced the pressure to maintain large central offices, making regional growth easier to support.

Property, transport and workforce planning evolve

Commercial property decisions reflect these wider changes. Office demand has become more selective, with businesses seeking high quality space near transport hubs rather than expanding footprint automatically. Regional cities have responded with mixed use developments that combine offices, housing, retail and public space.

Transport investment remains an important factor. Faster rail connections, local transit improvements and digital infrastructure continue to influence where employers expand. Business groups frequently argue that productivity depends not only on local skills but also on how easily workers and suppliers move across regions.

Labour markets are changing as well. More employers recruit nationally for roles that allow hybrid working, while regional offices increasingly act as collaboration hubs rather than traditional headquarters. This approach allows firms to access wider talent pools while reducing operating costs.

Policy and investment decisions enter a new phase

The debate around regional growth has moved beyond the idea of replacing London. Instead, policymakers and business leaders increasingly focus on creating stronger links between cities and allowing each area to develop sector strengths. Devolution agreements, local investment funds and university partnerships all play a role in this approach.

For investors and businesses, a broader economic map creates more options. Decisions around expansion, media buying, recruitment and supply chains can now reflect local market conditions rather than defaulting to the capital. Regional cities that combine transport access, skilled labour and commercial space may become more competitive destinations for long term growth.

London remains the UK’s largest and most internationally connected business centre, but the latest analysis suggests a more distributed pattern of growth is taking shape. The practical implication is not a decline in the capital but greater competition and opportunity across the country. Companies that continue to view the UK through a single city lens may overlook emerging markets, supplier networks and talent pools that are becoming increasingly important to future performance.

The next few years are likely to test whether regional momentum converts into sustained productivity gains and higher value employment. If investment, infrastructure and skills continue to align, the UK economy may become less concentrated and more resilient than in previous decades.