Major developments in Brum

The Birmingham economy has an output of £38.9bn, 1.4% of the UK’s economy. From 2022 to 2023, Birmingham’s economy grew by £1bn (2.7%). The main contributions to the economic output of the city’s economy are business, financial, and professional services (£12.4bn GVA), public services (£10.3bn) and retail (£3bn). Both finance and public services have a slightly higher concentration than compared with England as a whole. A significant part of the economy is the ‘every day’ or ‘foundational’ economy, labour-intensive, non-tradable activities mostly serving local needs and markets.

In June 2025 the government published the UK’s Modern Industrial Strategy, a 10-year plan to support growth of the industries of the future. The strategy focuses on eight sectors with the highest growth potential. The strategy highlights actions to increase investment in the sectors including R&D and reducing barriers to growth.

Within Birmingham, there is a focus on the Industrial Strategy sectors of life sciences, professional & business services, creative and digital and clean energy. Birmingham is estimated to have over £2bn of growth by 2030 in these sectors, and which is a very large part of the growth in these sectors in the region.

Life sciences

There is a strong research base covering health, medical devices, diagnostics and digital healthcare and with R&D and commercial translational centres, propelled by universities. Assets include the Birmingham Health Innovation Campus, the University of Birmingham’s digital health research, Edgbaston’s life sciences cluster, Aston Science Park, and the emerging Knowledge Quarter health innovation hub.

Finance and business services

There is a business base and a growing cluster of corporate headquarters and fintech innovators in the Enterprise Zone in the city centre. Further expansion of commercial and office opportunities are planned in the city centre. There is the potential for diversification too, such as FinTech, LegalTech, PropTech and InsurTech.

Clean energy industries

The growing Green Energy Innovation District at Tyseley is a centre for hydrogen and low carbon generation and storage, the development of smart energy systems and clean tech, it hosts the Birmingham Energy Innovation Centre and the University of Birmingham’s Energy Institute, while the establishment of the National Centre for the Decarbonisation of Heat will commence shortly.

Creative and digital industries

Harnessing the city’s creative and tech talent pipeline, is accelerating in Digbeth. The Custard Factory is a major hub of 500 businesses, including startups, household brands, creative and digital services and workspaces and leisure facilities, while Digbeth Loc Studios and BBC’s campus are emerging creative assets. Sport and entertainment are powerful drivers too with the Sports Quarter, centred around a new stadium and in an area home to digital and creative businesses, is a major opportunity to expand the city’s sports broadcasting, live events, and media production.

Page last updated: 16 October 2025