The South West of England encompasses a diverse mix of rural and urban areas, including counties such as Cornwall, Devon, Dorset, Somerset, Gloucestershire and Wiltshire. Home to around 5.7 million people, the region accounts for approximately 8.5% of the UK population. While cities like Bristol continue to thrive, ranking among the most affluent urban areas outside London, other parts of the region, particularly in the far west such as Cornwall, face persistent economic challenges.
The South West Productivity Forum was launched in July 2025 to understand specific productivity challenges facing the South West and support place-based solutions for better policy making. It aims to strengthen existing collaborations and develop new ones across the region, as well as hosting events to bring stakeholders together to make progress on key regional productivity issues and policies, while also providing a convening platform for inputs to emerging Local Growth Plans within the South West of England and the new local and devolved government arrangements, plans and strategies.
The Forum also contributes to The Productivity Institute’s broader research agenda and ensures the region’s challenges and opportunities are reflected in the UK’s economic future.
The South West Forum is led by the University of Bristol. It is involved in the implementation of research insights, the design of practical business and policy interventions, and in providing input to the development of the Institute’s future research agenda.
Members include stakeholders from policy, community and business leaders from local, national and multinational enterprises.
The South West of England’s economy is shaped by a mix of high-productivity hubs and a broader landscape dominated by small and medium-sized enterprises in sectors like hospitality, agriculture, tourism and diverse public services. These industries typically generate lower value-added output, especially in underserved areas where access to capital, skills, and innovation is limited. Investment and innovation tend to be concentrated in urban centres like Bath and Bristol. This centralisation, combined with the region’s rural geography and connectivity challenges, contributes to uneven development and limited innovation capacity.
Efforts to reach net zero by 2030 are underway, but the region faces unique challenges due to its geography and a growing population, which increases pressure on housing and transport infrastructure. Housing affordability is a major issue, with demand outpacing supply, especially in areas where land is protected for environmental reasons.
Despite its high-productivity hubs, a key challenge to developing a thriving South West is the lack of effective transport links. The region’s inadequate physical infrastructure means that capitalising on the potential for spillovers for local businesses may be difficult. Only one city-region currently has a mayoral combined authority with devolution powers – the West of England Combined Authority – which governs 982,000 people and oversees an economy valued at over £39.4 billion. However, this leaves 83% of the region’s population and 78% of its economy without a devolution settlement.
