As a significant investor in the UK regions outside of London and the South East, we seek to generate value across a wide geography and large population. Which is why, once again, we commissioned business economist Mark Gregory to undertake an independent review of our economic and social impact based on our 2024 activity – in our own business and across our portfolio.

While most reporting of business activity focuses on financial measures such as profit and loss, the products sold, people employed and purchases made have a wider impact on economy and society nationally and at a local level. The economic and social impact assessment is an estimate of our impact on:

• Economic activity, measured by contribution to Gross Value Added, at the national and regional level in the UK
• The level of employment, number of full-time employees (FTEs), supported nationally and regionally
• Productivity, GVA per FTE, both within NorthEdge and with their portfolio
• The quality of work as demonstrated by wage levels, gender pay ratios and investment in training and apprenticeships
• Wider social impact measured by activity levels in areas with significant challenges, measured by the UK Index of Multiple Deprivation
• Additional impacts in communities through charitable giving and volunteering

The output of this analysis shows that, in 2024, as well as creating financial value NorthEdge had a significant impact on economic and social development across the UK, contributing £656 million of GVA and supporting almost 10,000 jobs (FTEs). c.70% of this impact was generated in the UK regions outside of London and the South East.

This impact was achieved through strong productivity performance. Adjusting for the sector and regional mix compared to the national picture, NorthEdge’s portfolio is 7 to 11% more productive. Taking into account the age and size of the companies in the portfolio, output per FTE is 15% to 20% higher than the comparable national.

In addition, in 2024 31% of the employees in the NorthEdge portfolio lived in the 30% most deprived areas in the UK. Creating well-paid work in places where unemployment rates are typically two or more times the national average and incomes are around half mean this is hugely impactful.

NorthEdge has a constantly evolving portfolio. However, like for like between 2023 and 2024, allowing for changes in the portfolio and improvements in the methods used to estimate impact, across NorthEdge’s portfolio GVA contribution grew by 4%, employment supported increased by 1% and adjusted productivity was up 3%.

This represents a real and measurable private capital contribution to economic rebalancing across the regions of the UK.

Read more about the economic and social impact of NorthEdge and our portfolio in our latest Sustainability Report.