Oxford Economics: Understanding County Economies

Understanding County Economies provides the first comprehensive assessment of the economic role of England’s county areas and their importance to national growth. Commissioned by the County Councils Network (CCN) and produced by Oxford Economics, the report argues that counties are central to the UK economy but are under‑recognised in industrial strategy and devolution policy, which has historically focused on cities.

The study finds that CCN areas account for nearly half of England’s population and economic activity, with particular strengths in manufacturing, exports, employment resilience and net contributions to the Exchequer. However, counties also face structural challenges, including weaker productivity than the England average, an ageing population, housing affordability pressures and an industrial mix with fewer high‑value service sectors.  

The analysis demonstrates that county economies are predominantly urban or semi‑urban rather than rural, and that any “big‑city‑only” industrial policy risks overlooking large parts of England’s untapped productivity in counties. The report also finds that greater fiscal and spending devolution to counties could generate substantial efficiency savings, which—if partially reinvested—could significantly increase growth, employment and productivity.  

The report finds that CCN areas account for:

47% of England’s population

44% of employment

41% of England’s GVA: £600bn

Over 50% of England’s manufacturing output

Around 40% of England’s exports

Data in the report reveals that:

CCN employment has grown by nearly 1m jobs since 2007

Productivity in CCN areas averages below the England mean, but above combined authorities

Manufacturing employment is forecast to fall by 144,000 jobs by 2027, despite rising output

CCN areas contribute a net fiscal surplus of around £54bn to the Exchequer

Recommendations to government include:

Place county economies at the heart of the national Industrial Strategy

Treat counties and cities as equal partners in place‑based growth policy

Devolve fiscal and spending powers to CCN members by default

Reinvest a share of devolution savings into skills, infrastructure and productivity growth

Support diversification into high‑value service sectors alongside advanced manufacturing

Align housing, infrastructure and transport policy with county‑led growth strategies.

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