Economy & place

Herefordshire is a predominantly rural county with around 95% of the county classified as such.  It has the the third lowest population density of any English county (behind Northumberland and Cumbria), with large areas of picturesque and relatively unspoilt countryside.  In addition to Hereford city, there are five historic market towns (Bromyard, Kington, Ledbury, Leominster and Ross-on-Wye), each with a distinctive character. 

The county boasts numerous historic buildings, including Hereford’s impressive medieval cathedral.  Herefordshire has two National Landscapes (Wye Valley and Malvern Hills), 9% of land  area is designated for nature conservation and the Bannau Brycheiniog (Brecon Beacons) National Park borders the west of the county.   These natural assets offers a wealth of opportunities for residents and tourists to benefit from engaging with nature and to enjoy a range of outdoor leisure activities.

Flooding, mainly in the flood plains areas of the county's main rivers, is a significant issue and is likely to increase in frequency and severity with climate change.

As well as risks from climate change, widespread declines in biodiversity were recognised in the council’s declaration of a Climate and Ecological Emergency in 2019.  Pollution means that the ecological health of the entire catchment of our two biggest rivers (the Wye and its tributary the Lugg) has been downgraded to ‘poor’ (‘unfavourable-declining’) by Natural England. This is mainly attributable to nutrient run-off from intensive poultry farms and discharges of raw sewage.

Air quality is generally good, with the county’s only two Air Quality Management Areas, where air pollution levels are higher than the national objectives, related to traffic congestion on major roads in Hereford and Leominster.

Agriculture and manufacturing are more important to Herefordshire's economy in terms of numbers of businesses, jobs, and contribution to the economy (Gross Value Added) than is the case nationally. 

Economic output (Gross Domestic Product) per head of population is significantly lower than in the West Midlands region and England, and Herefordshire has amongst the lowest levels of labour productivity (GVA per hour worked) of comparable areas of the UK, contributing to earnings consistently being significantly lower than the regional and national averages. 

Housing affordability is a long-standing issue and the county also has higher than average levels of fuel poverty and excess cold hazard, linked to an over-representation of older, poorly insulated, houses, particularly in rural areas, coupled with low wages and a below average proportion of homes with mains gas supply.

Private rental prices have increased faster than overall inflation in recent years but are lower than regionally and nationally

The county's road network mainly comprises rural ‘C’ or unclassified roads leading off of single carriageway ‘A’ or 'B' roads, with direct motorway access limited to the southeast of the county.  Residents are heavily reliant on private motor vehicles, with limited rural bus services and only four railway stations (at Colwall, Hereford, Ledbury and Leominster).

In the related documents section of this page you can access the recent economy and place-related research and analysis that we have published.