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Region an £11bn commuter belt according to report | Region an £11bn commuter belt according to report |
| Written by Business Weekly | |
| Thursday, 08 March 2007 | |
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Commuters contributed £11 billion to the region's economy in 2006 according to the latest analysis from the East of England Development Agency.
The mammoth figure represents one tenth of the entire economy of the East of England. Hertfordshire and Essex are the two counties that feed most of the workers into London, according to the research, though Suffolk is showing signs of increased commuting with house prices on the increase. The role of commuting is reflected by the changes in parts of Suffolk over the last 12 months, EEDA says. Some areas of the county have seen some of the biggest growth in property value, with Bury St. Edmunds and Sudbury seeing increases of 19 and 26 per cent respectively. Property hotspots arise where there are good transport links, lower than average prices and good quality of life. Michael Spicer, an economic analyst at EEDA said: “Commuting makes a huge difference to our economy. It happens within every region but only in the Greater South East is it of any regional economic significance. The net contributions to the economies of other regions in England are all close to zero. “Commuting is a feature of life for those living in the East of England, and it’s clear that a large proportion of residents endure long journeys to work from the £11 billion contribution. Although the place of origin for commuters is concentrated in Hertfordshire and Essex, the effects are seen throughout the region as a whole.” In 2005, the net contribution of commuting to the region's economy (measured in terms of gross value added) was £11.23 billion, up from £10.98 billion in 2004, an increase of 2.3 per cent. The figure is calculated from the difference between the incomes earned by those who commute into and out of the region. The figures were published in EEDA’s Quarterly Economic Update.
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