Economy and Employment

Economy and Employment 3.21 Buckinghamshire has a strong and diverse economy, benefiting from its strategic location within the Southeast, the Oxford-Cambridge Growth Corridor, the Thames Valley and the wider Southeast The county generates approximately £19.2 billion in economic output and supports around 285,000 jobs across more than 31,000 businesses, around 98% of which are small and mediumsized enterprises (Buckinghamshire Economic Growth Plan, 2025). 3.22 Economic activity is spatially diverse and supported by several established sector clusters and specialisms. These include high-performance engineering around Silverstone, the Westcott Space Cluster, life sciences activity associated with Stoke Mandeville and South Buckinghamshire, alongside a growing health and innovation sector, and the nationally significant film and media cluster at Pinewood. These clusters play an important role in attracting investment, creating highvalue employment opportunities and reinforcing Buckinghamshire’s position within the wider Southeast and national economy. Figure 2: Buckinghamshire innovation clusters and sector specialisms (Source: Buckinghamshire Economic Growth Plan, 2025) 3.23 Figure 2 illustrates the spatial distribution of Buckinghamshire’s key economic clusters and their relationship to strategic transport infrastructure and surrounding economic centres. This highlights the county’s role as part of a wider interconnected economic geography and the importance of connectivity in supporting economic growth. 3.24 Despite these strengths, Buckinghamshire faces several economic challenges. Analysis in the Buckinghamshire Economic Growth Plan (2025) indicates that productivity growth has been relatively weak over recent years. Output per worker was previously above the national average prior to 2011 but has since declined to broadly align with it, with more recent trends suggesting a potential widening gap. Figure 3: Comparison of labour productivity in Buckinghamshire and England (2004–2023) (Source: Buckinghamshire Economic Growth Plan, 2025) 3.25 As shown in Figure 3, Buckinghamshire’s productivity advantage relative to the national average has reduced over time. This reinforces the need to support innovation, skills development, infrastructure investment and the growth of higher-value economic activity across the county. 3.26 Buckinghamshire also experiences significant levels of out-commuting, reflecting its strong economic links to London and the wider Southeast. Around 12.6% of residents work in London, resulting in a net outflow of workers from the county (Buckinghamshire Economic Growth Plan, 2025). Figure 4: Workday migration and commuting patterns in Buckinghamshire (Source: Buckinghamshire Economic Growth Plan, 2025) 3.27 Figure 4 highlights the imbalance between local labour supply and employment opportunities, with a net outflow of workers and a reliance on jobs outside the county. Whilst this reflects Buckinghamshire’s strong economic relationship with London and surrounding areas, it also indicates opportunities to strengthen local employment provision and support a more balanced local economy. 3.28 The county faces a range of wider economic pressures, including housing affordability constraints, infrastructure capacity issues, skills shortages, congestion and the changing role of town centres. Increasing demand for flexible employment space, the need to support regeneration and maintain vitality within key centres, and the transition towards new ways of working continue to influence patterns of economic activity and development. 3.29 Supporting sustainable economic growth, improving productivity and creating high-quality employment opportunities are therefore important priorities for the Local Plan. Responding to these challenges requires a coordinated approach which supports inward investment, innovation and business growth, whilst ensuring that economic development is aligned with infrastructure capacity, environmental constraints and opportunities, and the delivery of well-connected places.