Greater Manchester pioneers economic development collaboration, assessment shows balanced, resilient growth economy

12th March 2011

To underpin the work of the new Greater Manchester Local Enterprise Partnership (LEP) and Combined Authority, New Economy and Greater Manchester’s ten local authorities have today released a report that updates our intelligence on Greater Manchester economy, taking forward the baseline produced for the groundbreaking Manchester Independent Economic Review (MIER).

By producing this central government requirement collaboratively, Greater Manchester saved over £500k of the funds allotted to it, with the savings retained by the ten Authorities.

Since the MIER was published, the UK has suffered the worst recession for 80 years. However, the Local Economic Assessment (LEA) finds that Greater Manchester is best placed in the North of England to deliver private sector employment growth over the next decade, and will also be a major contributor to overall UK prosperity in terms of GVA growth and the Government’s objective of rebalancing the UK economy. The conurbation is the least dependent on public sector employment of any major UK city outside London and Bristol.

The LEA quantifies GM’s service-led growth, with financial and professional services alone producing a fifth of GVA and a sixth of employment. Greater Manchester’s creative and digital industries are now the UK’s biggest centre outside the Greater Southeast. A specialism in manufacturing and logistics, especially aviation, endures, although health and retail are the conurbation’s second and third largest employment sectors.

The assessment highlights that continued action is needed to improve skills levels right across Greater Manchester so that residents are able to pursue opportunities in growth sectors. It also flags that early years interventions are needed to break intergenerational cycles of worklessness and benefit dependency and to improve employment and economic activity rates over the long term to ensure that prosperity is shared.

The findings and implications of the research have been presented to business leaders and councils across Greater Manchester in a series of roadshows on Building Economic Resilience. Reports and presentations on each of the ten GM Authority areas can be found on new economy’s website here.

Dr Alexander Roy, Head of Economic Analysis at New Economy said: “It is now nearly two years since the groundbreaking Manchester Independent Economic Review was published, the largest and most ambitious review of a conurbation’s economy ever undertaken in the UK. This assessment updates our intelligence on, and understanding of, the Greater Manchester economy gathered during the MIER and subsequently turned into the Greater Manchester Strategy. It reinforces the dual emphasis within GMS on boosting productivity whilst ensuring that all parts of the conurbation and all its people enjoy improved opportunities as a result of a stronger economy.”

Mike Emmerich, Chief Executive at New Economy added: “Greater Manchester is taking partnership working to another level with the establishment of the Greater Manchester Combined Authority and Local Enterprise Partnership. These new tools will help Greater Manchester’s partners continue the strong growth of the largest functional economic area outside London and in rebalancing the economy towards private sector-led growth in those areas where the public sector has been an important employer. This is an exciting time for Greater Manchester and the Local Economic Assessment provides an up-to-date evidence base to inform these evolving initiatives.”

ENDS

Notes to Editors

For further information, photo and interview opportunities please contact:
Louise Latham
Head of Communications
Marketing Manchester
Direct Tel: 0161 238 4504

New Economy is one of the six Association of Greater Manchester Authorities Commissions, established in 2009. New Economy’s purpose is to create economic growth and prosperity for the people of Greater Manchester. We are committed to working with our partners to lead, influence and innovate; creating a better economy. From strategy to research, project management and consultancy, everything we do has one aim in mind: To make Greater Manchester a better place to live and work.

New Economy makes a difference by:

• Developing economic intelligence
• Helping to create jobs and improve skills
• Saving money and increasing efficiencies
• Increasing investment and enterprise
• Playing our part in reducing carbon emissions

New Economy
Growth and Prosperity for Manchester

• The Local Economic Assessment was produced by New Economy in partnership with the ten local authorities of Greater Manchester – Bolton, Bury, Manchester, Oldham, Rochdale, Salford, Stockport, Tameside, Trafford, and Wigan – the Association of Greater Manchester Authorities (AGMA).
• Manchester’s New Economy has been established to strategically co-ordinate work in the field of economic development, employment and skills in the area of the ten AGMA Local Authorities (the Association for Greater Manchester Authorities, made up of the local authorities of Bolton, Bury, Manchester, Oldham, Rochdale, Salford, Stockport, Tameside, Trafford and Wigan).
• New Economy is one of seven such commissions created as part of the new governance arrangements for Greater Manchester. Its operations are overseen by a private sector-majority. The others are health, public protection, planning and housing, transport, environment and improvement and efficiency.
• For information on the work of New Economy and electronic versions of the Local Economic Assessment please visit: www.neweconomymanchester.com
• The Government approved Greater Manchester’s proposal for a business-led Local Enterprise Partnership (LEP) in October 2010. The LEP has been established and is private sector led.
• GM’s Local Enterprise Partnership is designed to support business and Local Authorities to grow the local private sector, tackle major barriers to growth and develop shared strategies for the local economy to increase job creation. By combining strong private sector business leadership with groups of local authorities whose leadership, planning, regulatory and infrastructure roles are critical to growth, it will be able to bring an integrated approach across GM’s real economic geography, fostering a strong environment for business growth.
• The Greater Manchester Combined Authority will take effect from 1 April 2011. Ministers have agreed plans to create the Combined Authority – the first of its type in the country – to enable Greater Manchester to receive new powers from Whitehall to work more effectively on significant issues including transport, regeneration and economic development.
• The Combined Authority complements the Greater Manchester Local Enterprise Partnership and will ensure a coordinated approach is delivered in the 10 local authorities that make up Greater Manchester.
• Under the new arrangements a new body – Transport for Greater Manchester (TfGM) – will also be established. TfGM will assume responsibility for delivering transport across Greater Manchester.