READING ECONOMY BETTER PLACED THAN MANY TO RECOVER FROM COVID MAJOR FILM STUDIO BOOST TO THAMES VALLEY SCIENCE PARK

Good Growth for Cities 2020, published by accountants PwC and think tank Demos in January, ranks Reading second only to Oxford among the UK cities economically able to withstand the major pandemic economic shock.

The report reveals that Reading, along with the economies of other cities that performed well in the two years before Covid (2017-19), has been relatively less impacted by the pandemic. The mix of sectors and its performance on broader economic and social indicators has to some extent provided some resilience says the report.

While Reading ranked tenth for the economy least impacted by Covid in the UK, its overall ranking of second in the Index demonstrates its success in recent years in creating jobs, high incomes, good quality of life, high workforce skills and strong levels of business creation.

Nigel Horton-Baker, Executive Director, Reading UK, said: “In Reading, as everywhere, Covid is taking its toll on people's lives and the resulting economic restrictions affects the ability of businesses to operate normally. However, there are good reasons for optimism about the future. The Good Growth report identifies the strength and diversity of the Reading economy which has allowed it to bounce back from previous crises quickly and which will help it get back on track again quickly post-Covid.”

Reading’s success is based on a broad range of factors, he added.

“The Powered by People Reading Economic Recovery Strategy, launched by Reading UK before Christmas, places skills, sustainability, inclusivity and placemaking among the key actions needed to support our recovery. It is heartening to see that the Good Growth report concurs with that wider assessment of success.”

The Index also reports that capital investment remains plentiful but paused, unlike in the last global financial crisis.

Nigel added: “Reading has seen new investment and businesses moving in during the pandemic; a huge vote of confidence for the quality of our economy and skills of our workforce.”

Reading could be welcoming Hollywood stars to the town following the news that a US-based film studio investor is to develop a major film studio and creative media campus at the Thames Valley Science Park.

Late last year the University of Reading, which owns the science park, revealed that it had agreed a deal with affiliates of Commonwealth Real Estate LP, a film studios investor based in Los Angeles, for a long lease of land at the park.

It represents one of the most significant investments into the Thames Valley in the last decade.

The campus will be known as Shinfield Studios, and is expected to open, subject to planning approval, in late 2022. The studios will bring major Hollywood film productions to the UK, creating around 1,500 new jobs, and supporting up to 1,500 further indirect jobs.

The scheme represents a significant investment in the British film and creative industries and is expected to create £500 million of annual inward investment.

Professor Robert Van de Noort, Vice-Chancellor of the University of Reading, said: “This will bring welcome significant Hollywood investment, creativity and job opportunities to Reading,

Wokingham and the wider Thames Valley. It is a credit to the hard work and determination of everyone involved to have concluded a transaction while negotiating through challenging restrictions on movement and travel.

“This lease presents a superb opportunity for the university and facilitates an exciting development for the wider community.”

Nick Smith, Managing Director of Shinfield Studios, said: “Britain has an enviable array of filmmaking talent, but the industry is short of high-quality studio facilities capable of catering for the new and emerging technologies that will form the core of television and film production in the future.

“This development, costing more than £200 million, will create a new powerhouse of creative production and new talent, as well as generating up to 3,000 new jobs.

Adam Fisher, Commonwealth Founder and Chief Investment Officer, said: “We look forward to building partnerships across Wokingham and Reading to make this project a resounding success

Our ambitions for the new studio will be of real benefit to the local economy and the UK as a whole.”

Paul Britton, Chief Executive of Thames Valley Chamber of Commerce, said: “This is a win for UK Plc and a big statement about the leading role of universities in driving growth and recovery.”

Law firms Eversheds Sutherland and Farrer & Co advised on the new agreement.