A new economic report said Oxford was expected to lead the nation’s post-Covid-19 recovery in 2021 with some of the fastest employment growth in the UK.

The latest UK Powerhouse report from Irwin Mitchell and the Centre for Economic and Business Research reveals that Oxford had the strongest end to 2020 with a 3.0% increase in employment.

The report said this level of employment growth would dip slightly in the 12 months to the fourth quarter of 2021, but that it will still create 2,200 new jobs.

It adds that Oxford’s dominant life sciences and research sectors, which have seen a rise in funding amid the coronavirus pandemic, has been an important boost for the local economy.

Read again: Oxford University life and mind science building given go-ahead

Oxford is also ranked 8th out of the top 50 cities surveyed for GVA (gross value added) with a 7.1% growth during 2021. Compared to the end of 2020, Oxford’s economy will be £1.4bn larger by the end of 2021.

Shoppers in Cornmarket Picture: Ed Nix

Shoppers in Cornmarket Picture: Ed Nix

Vicky Brackett, partner and head of Irwin Mitchell’s business division, said: “Similar to all other towns and cities in the report, Oxford suffered a contraction in the size of its economy during 2020. It has recovered very strongly and by the end of 2021, it is expected to be in the top 10 for growth and job creation.”

“Oxford cannot afford to be complacent though. With the impact of the end of the furlough scheme expected to have a negative impact on employment, it is clear that local plans for job creation need to be in place before October.

Read more: Drivers confront Oxford activists

“It is also clear that a resolution to some of the outstanding issues surrounding Brexit can only have a positive impact on the future outlook. Supporting those SMEs in the region who export to the EU will not only enhance the economic output, but can also make a positive contribution to the local jobs market.”