Never had it so good? Edinburgh economy outperforms London for first time

Plus: Alcohol restrictions scrapped; thousands back Doddie Weir stadium campaign; and anyone for an Oasis tote bag?

Cranes on the Edinburgh skyline. Photo by V2F on Unsplash

Edinburgh seals remarkable rise by overtaking London in economic power tables

Edinburgh has long been Scotland’s economic powerhouse, but for the first time it has outperformed London.

The latest data from the Office for National Statistics show Edinburgh had a higher GDP per head of population than London for the first time since records began. In simple terms, GDP measures the value of goods and services created in an area.

Twenty-five years ago, the same data put London 19% ahead of Edinburgh, but the economic performance of the Scottish Capital has steadily and consistently improved since then.

Edinburgh remains the sixth largest economy in the UK overall, behind London, Manchester, Birmingham, Leeds and Liverpool, but is the best performing per head of population. Only a tiny number of individual London boroughs, such as Camden (GDP per head £188,289) outperformed Edinburgh in the latest figures, which covered 2023.

GPD of major UK cities per head of population in 2023

Edinburgh £69,809

London £69,071

Manchester £65,591

Glasgow £50,250

Brighton £47,461

Leeds £47,411

Bristol £47,148

Nottingham £42,837

So, we’re all rich, right? Well, Edinburgh does enjoy one of the highest average incomes (£38,600) and one of the lowest unemployment rates (3.5%) in the UK. However, the cost of living in the Capital is commensurately high, with average rents of more than £1,400 a month. One in five children in the Capital also grow up in relative poverty, largely due to the high cost of housing in the city. That is a lower rate than in many major UK cities - Manchester and Birmingham, for example, report rates of around 40% - but is still a serious concern.

Why then are public services struggling so badly? Putting aside any debate around general levels of tax and spending in Scotland and the UK, much of the tax raised in Edinburgh is redistributed to less affluent parts of Scotland. That is fairly standard, but Edinburgh makes the case for getting a raw deal, pointing to the lowest funding per head of population in Scotland. Local government also has limited powers to pool resources and tackle major challenges such as the affordable housing crisis, compared to, for example, Manchester and Liverpool in the north of England. The Scottish Government, meanwhile, is criticised for failing to make tackling these problems a high enough priority, when Edinburgh is the key driver of Scotland’s economic success.

What’s behind Edinburgh’s economic surge? There are various factors behind the city’s rise in the rankings, in particular the success of its financial services and universities, as well as the new industries which the universities support, such as life sciences and technology. Edinburgh has also been a UK leader in attracting international investment.

What about the future? There are plenty of reasons to be optimistic about the future of the city’s economy. The decision to place the UK’s £800m exascale super-computer in Edinburgh, for example, makes it well-placed to build on its position as a European leader in data and developing artificial intelligence, supporting jobs and attracting further investment. It is also a world leader in robotics, life sciences - see below for more on the Usher Building opening - and “agritech”.

But what about the housing crisis? Council leader Jane Meagher says this is one of the city’s biggest challenges, with an economic as well as human cost - a view backed by the city’s Chamber of Commerce. “To keep thriving, we need to manage the pressures placed on our housing, environment and our residents. This is the fastest growing city in Scotland, with the population expected to increase by 60,000 over the next 20 years with over four million visitors every year,” she says.

YOUR EDINBURGH BRIEFING

OASIS TOTE BAG ANYONE? A pop-up Oasis shop will open on George Street on 4 August where fans can snap up official merchandise for the sell-out concerts at Murrayfield. Around 8,000 more tickets are also expected to be released for the three concerts after the council agreed to a capacity increase to 69,990. At the shop, expect t-shirts (from £35), hoodies and denim jackets (both £75), tote bags (£20), bucket hats (£25), postcards (£1) and the chance to recreate the band’s iconic album covers in front of a green screen. It’s just rock ‘n’ roll…

GEORGE STREET GOES FOR GOLD: The proposed £35m “full bells and whistles” revamp of George St to make it more pedestrian and bike-friendly has been backed by city councillors. The local authority will now look to secure the necessary funding, from the Scottish Government and probably the city’s Visitor Levy funds, with a view to starting work in two years time.

BOOZE LIMIT SCRAPPED: The Capital has scrapped limits on the number of alcohol licenses in any area after Sainsbury’s was refused a license for its proposed new branch on Princes Street earlier this year. The move was agreed by city councillors despite opposition from NHS Lothian, Police Scotland and Alcohol Focus Scotland. SNP councillor Cathy Fullerton said the policy was outdated and there was limited evidence to show it was effective in cutting down on alcohol abuse, but Green councillor Chas Booth said it was “deeply retrograde” and removed a key tool for protecting public health.

STAND FOR DODDIE: More than 27,000 people have backed a petition calling for the north stand at Murrayfield Stadium to be named after Doddie Weir. Campaigners are suggesting a new name of Murrayfield North for Doddie or MND in celebration of his work to combat the disease. Meanwhile, golfer Graeme Smeaton has told how film star Hugh Grant popped over to congratulate him in the middle of an MND fundraising challenge in Aberlady, East Lothian.

USHER OPENING: The director of the World Health Organisation Dr Tedros Adhanom Ghebreyesus Usher Institute has helped launch a £49m innovation hub at Edinburgh’s BioQuarter. The Usher Building brings together scientists, healthcare providers and industry leaders to tackle some of the world’s most pressing healthcare challenges. Its work will leverage advances in artificial intelligence, data analysis and advanced imaging to find new solutions to issues such as the challenges of an ageing population, widening health inequalities and childhood wellbeing. The institute was funded by a £50m award as part of the Edinburgh & South East Scotland City Region Deal.

MODEL RAILWAY: East Coast Mainline operator LNER has been held up as the model for renationalising Britain’s railways by UK Transport Minister Lord Hendy. After being brought back into public ownership in 2018, LNER is now the country’s fastest-growing long-distance operator. Just don’t mention the patchy wifi. Network Rail say they hope to have that fixed by 2028.

TOUR DE CASH: The city has agreed to spend £1.7m to bring the Grand Depart of the Tour de France to Edinburgh in 2027. The three-day start to one of the world’s biggest sporting events is reported to have brought £102m in economic benefits to Yorkshire when it was staged there in 2014.

KING’S THEATRE APPEAL: The King’s Theatre has launched a new public fundraising appeal to help meet the £40m-plus cost of its ongoing refurbishment. One of the few operating Edwardian theatres in the UK, the cost of work to secure its future has doubled after engineers uncovered extra structural challenges during work on the 120-year-old building.

I’M F****** BACK, BABY: Lewis Capaldi provided the feelgood story of the week by making a triumphant return to Glastonbury two years after being unable to complete his set at the festival. The singer from Whitburn, West Lothian - who made some of his first professional appearances in the Cowgate - is making a comeback after taking time out to look after his mental health. Making one of the worst-kept ‘secret’ appearances at Glastonbury, he told a delighted crowd: “I’m f****** back, baby.”

‘COMING FOR YOU’: Police Scotland chief constable Jo Farrell has warned criminal gang leaders who may be orchestrating violence in the Capital from abroad: “We’ll be coming after you.” She told the BBC officers were building intelligence in order to target the most senior figures in the gangs. Dubai-based Ross McGill is reportedly directing a feud against jailed city cocaine dealer Mark Richardson. A 17-year-old has been charged with deliberately starting two fires at properties in Niddrie, bringing the total number of arrests in connection with the ongoing violence in Edinburgh and Glasgow to 49.

Pic of the week

Irena Komunjer plays the fool Feste in The Forth Act’s wonderful 1960s-set staging of Twelfth Night in Saughton Park. Pic: The Forth Act/Andrew Morris Photography

THE BUSINESS

£42 million construction contract in Midlothian

The new campus as designed by JM Architects

Construction giant Kier has secured a £42m contract from Midlothian Council to build the new Mayfield Community Learning Campus.

Work will start this summer on the development, replacing several existing school buildings which will be demolished and will deliver a combined education and community hub, incorporating Mayfield Primary School, St Luke’s RC Primary School, nursery , additional support needs and community facilities.

The campus will also offer community services and leisure space, including a 3G pitch, seven-a-side grass pitch, basketball court, library, meeting rooms and growing spaces.

The project is backed by the Scottish Government through its Learning Estate Investment Programme.

TRADING CONFIDENCE FALLS: Business trading confidence in Scotland fell five points during June to 47%, according to the latest Business Barometer from Bank of Scotland, although optimism in the economy held steady at 48% and a net balance of 55% of Scottish businesses expect to increase staff levels over the next year, up 25 points on last month. The Business Barometer, surveys 1,200 businesses monthly.

CONVERGE SUCCESS: Five budding entrepreneurs from Queen Margaret University have been accepted into the Converge 2025 cohort, Scotland’s springboard for university innovators. The successful businesses include include a female-led theatre company amplifying women’s voices, a digital subscription platform offering masterclasses from top Scottish creatives, and an innovative grab-and-go pizza range.

FLAT OUT: Real estate investor, developer and asset manager, Firethorn Trust, has topped out at its purpose-built student accommodation (PBSA) development at Leith, the ceremony marking completion of the site’s structural framework. The six storeys will accommodate 230 student beds, alongside generous amenities including a fully equipped gym, student common room, cinema and modern study spaces.

THAT’S ENTERTAINMENT

DEAR EVAN: The smash hit Tony, Grammy and Olivier award winning musical Dear Evan Hansen comes to the Playhouse from Tuesday until Saturday.

SHAKESPEARE AT THE (OTHER) CASTLE: Three Inch Fools present Midsummer Night’s Dream in the park at Lauriston Castle on Wednesday next week, 9 July. Bring your own cushions, camping chairs and waterproofs (just in case). Open for picnics from 6pm.

KAISERS KICK-OFF: The Kaiser Chiefs kick off this summer’s Castle Concerts. Tickets are still available to see them on Friday night. You can also catch Marti Pellow, Italian pianist and composer Ludovico Einaudi, Il Divo and Harry Potter and the Chamber of Secrets accompanied by The Royal Scottish National Orchestra.

QUICK BITES

SEPTEMBER CLOSURE: Aizle, a Michelin guide restaurant on Charlotte Square, is to close towards the end of September. Chef/proprietor Stuart Ralston, who recently won his first Michelin star for his restaurant Lyla, made the announcement on social media that he is closing Aizle, his first restaurant which was originally at St Leonard’s in the city’s southside, to focus on his other ventures Lyla, Noto and Tipo.

CALL TO ARMS: The Salisbury Arms in Edinburgh’s Dalkeith Road has reopened after a modernisation and makeover. The pub, thought to have been frequented by Sherlock Holmes creator Sir Arthur Conan Doyle, also offers an extensive food menu in its bar and restaurant.

CAFÉ SHUTS: Gullane café Goose Green has shut its doors due to rising costs and challenging daily demands.