Economy of Leeds

The economy of Leeds is diverse, with the service sector now dominating over the traditional manufacturing industries. It is the location of one of the largest financial centres in the United Kingdom outside London. New tertiary industries such as retail, call centres, offices and media have contributed to a high rate of economic growth. Leeds was voted 'Britain's Best City for Business' by Omis Research in 2003 but dropped to 3rd place behind Manchester and Glasgow in 2005 ("Relative under-performance over the past two years in transport improvements and cost competitiveness were the major contributing factors"). It is also regarded by some as one of the fastest growing cities in the UK.

Leeds' growth has helped to change the economic geography of the United Kingdom, as Leeds is now one of the largest financial centres in Britain outside the capital. New tertiary industries such as retail, call centres, offices and media have contributed to a high rate of economic growth since the early 1990s. Leeds was successful in becoming the first British city to have full broadband and digital coverage during the dot-com bubble, enabling it to become one of the key hubs in the emerging new media sector. Companies such as Freeserve, Energis, Sportal, TEAMtalk, Contactmusic.com and Ananova emerged from Leeds to dominate the UK internet industry. Now, over 33% of the UK's internet traffic passes through Leeds, making it one of the most important regional internet centres in the UK.

Over 124,000 people work in financial and business services in Leeds, the largest number of any UK city outside London. The strength of the economy is also indicated by the low unemployment rate. Although Leeds' economy has boomed in recent years, the prosperity has not spread to all parts of the city. Many areas south and east of central Leeds remain deprived, although are slowly starting to benefit from inward investment. Previously deprived areas have benefited from the economic growth such as Chapeltown and Kirkstall.