Published: Thursday, 18th September, 2008 08:00
Credit crunch less crunchy here
By Adam Hewitt
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AS banks and financial behemoths tumble almost as fast as house prices, the Reading area has every reason to be optimistic.
A swathe of experts and indicators show the town is better-placed than most to withstand the pressures of a faltering world economy.
Matthew Bell, regional director at Barclays Local Business in Reading, said that on one good marker of economic health, business start-ups, the town was out-performing the country.
He said 380,000 businesses were expected to start up nationally during 2008, down from last year’s 430,000, but added: “Reading’s start up figures have remained flat year on year – 400 for the first half of 2007 and 2008 – which reflects the strength of the local economy.”
A recent study commissioned by Thames Valley Economic Partnership (TVEP) discovered that of the world’s 50 most innovative firms, 17 have a presence in the region, along with 65 of the 250 highest research and development spenders in the world.
New Reading Borough Council chief executive Michael Coughlin describes his new patch as a “buoyant” town, and said: “It’s the engine room of the Thames Valley and one of the most important and successful innovation centres in the country.”
Council leader Jo Lovelock added: “Reading’s well-placed to withstand the economic downturn because of the way the town has been growing, but clearly we’re looking at some slowdown in terms of development. Some of the regeneration projects may have to move slower than any of us would like, but the high level of employment in Reading means we’re well-placed to deal with whatever happens.”
One of the biggest regeneration projects is Chatham Place, off Oxford Road, where the state-of-the-art car park is open, the affordable housing occupied and the apartments nearing completion. But the huge 'phase two’ of the project, involving giant new offices, leisure facilities and hotels built on decking to be laid across the IDR, could be on shakier ground unless Reading really can buck the national trend.
Nick Welsh, spokesman for the company behind the scheme, Muse Developments, said: “Phase two is still in the pipeline, and a mixed use project with office, leisure and hotel space is still the intention.
“The market is not in a good condition, and that galvanizes the project team to think carefully about how it can be best delivered”
- Around 78,000 of Reading borough’s 96,000 working-age people have a job according to the latest figures released in mid-August, and the official unemployment rate was 5.3%.
This is better than many of the biggest cities in the south east, with Brighton and Hove on 6.1%, Portsmouth on 5.9% and Southampton on 7.1%, while Reading’s neighbouring authorities did better – West Berkshire is on 3% while Wokingham is one of the best in the whole region, at 2.7%. National figures out yesterday showed the unemployment rate had jumped to 5.5%, the highest since 1999.
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