Economy

The Cumbrian Economy

Cumbria is geographically large (7,000 sq km), isolated from the core cities, sparsely populated (500,000 people) with a dispersed settlement pattern of many coastal, small towns and villages and lacks both a critical business mass and appropriate modern infrastructure.   People need to travel longer distances to satisfy their needs or utilise more innovative ways to access services and facilities.   There is a need to improve transport connectivity both within and outside Cumbria.   Demographic issues include the out-migration of young people, particularly graduates, and the need to meet the growing demand for services from an increasing ageing population. Alongside this there is a need to support diverse and sparsely populated rural areas as sustainable places to live and work.

Cumbria’s underlying economic challenges arise partly from the geography and history of the county but also from the decline of traditional manufacturing industries, steelworks, mining, the decommissioning of Sellafield and the competition from global tourism.   Some areas of the county experience high levels of worklessness, particularly in areas of multiple deprivation, and there are issues of under-employment and low wages in the lagging rural areas.  

However, there are significant opportunities to build on West Cumbria’s nuclear history, assets, technology and expertise to attract new nuclear generation in line with national guidance.   As a world leader in nuclear decommissioning, there is the opportunity to attract a cluster of energy related companies and globally significant research facilities.   There is also a major opportunity to further exploit Cumbria’s off shore gas fields, as well as the potential to develop renewable energy from the County’s natural wind, hydro, biomass, wave and waste solar resources.  

Cumbria is also a place of great natural beauty which can capitalise on the Lake District National Park and the Hadrian’s Wall World Heritage Site to encourage visitors and investment, especially in rural communities throughout Cumbria.   Cumbria’s growing reputation as the UK’s ‘Adventure Capital’, the premier destination for outdoor sports, adventure and leisure activities presents many opportunities for further development.

Equally key settlements along the M6 corridor and elsewhere present significant potential for private sector led investment.   Carlisle has ambitious plans to realise its aspirations as a growth point through the development of the airport, expansion of its Higher Education offer, improving its cultural heritage assets and securing a connection to the HS2 high speed rail network.   Infrastructure needs are critical for planning growth and resources will be needed to bridge funding gaps and ensure scheme viability.

Exploiting Cumbria’s strong representation in other key sectors such as advanced manufacturing, marine and offshore engineering (such as BAE Systems), food and drink processing, retailing, hospitality and its cultural offer will also be key to the County realising its future economic growth potential.

To find out more about Cumbria please use the menu on the left or click here for a summary of key statistics.