Oxford Economics predicts that the new nuclear plant at Leiston will boost the county’s performance by 22% by 2050 compared to a baseline forecast.
It says its Gross Value Added (GVA) growth will beat the average across the UK’s 12 regions as a result of the activity generated.
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The Oxford Economics report describes the county as facing ” a challenging outlook”, but suggests that the power plant could turn the tide, closing its productivity gap with the rest of the UK.
Without the plant its growth outlook is weak, it suggests.
It cites the main reason for the gap as the county’s less productive activities such as administrative services, wholesale and retail trade, human health and social work and hospitality.
This is compounded by an overall underperformance within sectors – as overall Suffolk’s industries are less competitive than in other parts of the UK, it says.
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In 2023, the average Suffolk worker produced £56,600 of GVA on average – a productivity gap of £11,800 per job or 17% to the UK average of £68,400 per job.
But the construction phase will have a major impact – with 13,800 jobs created – or a 6% increase in resident employment at its peak in 2032, it says.
As a result, around 1,700 to 2,200 Suffolk residents who would otherwise be unemployed will be in work, and once the plant is operational, well-paid skilled jobs will be created, along with training opportunities for local people.
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It is predicted it will cut the county’s jobless rate from 2.7% to as low as 1.7%.
Without the plant, the Suffolk economy is expected to lag behind the East of England and UK economies – growing by 1.5% a year compared to a regional and national average of 1.7%.
Instead, the energy plant will generate a further £3.85bn or 22% – putting the county on track to grow by an average of 2.2% a year – better even than well-performing areas including London and the South East, the report says.
Through its lifetime it is expected to generate £34.6bn in tax revenue and contribute £26.6bn to the UK economy during construction.
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The project has already committed to investing £4.4bn into the East of England with more than two thirds (70%) of its construction value awarded to UK rather than overseas businesses.
Joint managing directors Julia Pyke and Nigel Cann welcomed the report which they said confirms what they set out to deliver.
“This is a model for how large-scale projects can drive positive change, not just in Suffolk, but across the whole of the UK,” they said.
The £38bn plant will be British-majority owned by investors including UK Government, La Caisse, Centrica, EDF and funds advised or managed by Amber Infrastructure Group, including International Public Partnerships and the Nuclear Liabilities Fund.
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Energy secretary Ed Miliband said: “In backing Sizewell C and delivering a golden age of nuclear, we are boosting Suffolk’s economy while supporting thousands of new jobs for generations.”
Suffolk Labour MPs Jack Abbott (Ipswich) and Jess Asato (Lowestoft) welcomed the report.
Neil McCullough, Director of Cities Consultancy at Oxford Economics, said the project represented a long-term commitment to the county and would provide jobs and skills for local people.
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“Our report demonstrates the substantial economic boost that Sizewell C’s investment represents to the Suffolk economy,” he said.
“But the economic benefits are not isolated to Suffolk, and our analysis highlights how the benefits of the project extend to all regions of the UK.”
