24.06.2008 COUNTY ECONOMY LEFT BEHIND BY SCOTLAND'S CITIES

 PERTH and Kinross is lagging behind Scotland's main cities in terms of economic growth, according to accountants.  Statistics produced by chartered accountants Campbell Dallas show that Perthshire and Stirling have grown at a much slower rate than Edinburgh and Glasgow over a 10-year period.

This is based on the gross value added (GVA) of the two areas amounting to £15,073 a year and representing growth of 45.7%.

By comparison, Edinburgh has grown by 73.97% to £28,432 and Glasgow by 84.9% to £25,375, according to Campbell Dallas.

Corresponding figures show that growth rose by 49.1% for Angus and Dundee City to £15,506 and Clackmannanshire and Fife experienced a rise of 48% growth to £12,401.

GVA is used to estimate the value of goods and services produced in an area to measure its contribution to the overall UK economy.

The research is based on the Office of National Statistics' latest figures on GVA per capita per year, during the period 1995 to 2005.

Belfast is the first city in the rankings with growth of 99% taking its GVA per capita to £26,792.

Ian Williams, Chairman of Campbell Dallas and past president of Perthshire Chamber of Commerce, said, "It's disappointing to note not only the comparatively poor level of growth but also the quantum of the GVA.

"There is no doubt that this area has been substantially affected by the comparitively poor performance in the agricultural and rural sectors which accounts for a great deal of the economy in Perth and Stirling."

He added, "There is of course, in addition, uncertainty surrounding the financial services employment in both Perth and Stirling and this could have a significant effect on growth in the future."

The statistics show that although Edinburgh lags behind Glasgow in percentage growth, it is in fact the UK's strongest economy with £28,432 per resident per year.

The figures reveal that the average GVA per head for the UK is £18,205 with Glasgow, Edinburgh and Aberdeen being slightly better than this.

Mr Williams added, "There is no denying the economic power in Scotland is based in the central belt with Aberdeen following closely.

"However, there is no doubt in my mind that it is incumbent on the Scottish Goverment to assist local economies, on a micro-economic basis, in order to ensure that full employment is achieved throughout Scotland."

Date: 24th June 2008

Publication: The Courier and Advertiser