Northern Powerhouse scheme is helping Manchester economy outpace London
2 min read
17 July 2017
A new Cebr report has revealed the importance of the Northern Powerhouse programme, which has seemingly supercharged the north of the UK as the Manchester economy is growing faster than London’s.
The UK Powerhouse report from the Centre for Economics and Business Research (Cebr) estimates job creation across 45 UK cities based on government figures, and the George Osborne-launched Northern Powerhouse is said to be steaming ahead.
Findings showed that the Greater Manchester economy has grown 7.5 per cent since the end of June 2014, which is more than the 6.9 per cent in London. Looking deeper into the Northern Powerhouse and the economy for Manchester city itself has grown 9.1 per cent.
As it stands though, while the Cambridge economy has risen 7.1 per cent in the period, it is named as the fastest-growing city in the UK.
On a job creation basis, London outpaces Greater Manchester though, with roles in the city increasing by 7.3 per cent versus 4.3 per cent in the Northern Powerhouse.
Additionally, it’s predicted the Manchester economy will rise 14.8 per cent in the next decade, behind 16.1 per cent for London and 22 per cent in Milton Keynes.
That’s not to say that Manchester is unattractive for businesses by any means, but a call to action from Cebr to make sure the UK economy is balanced.
There have been movements towards the Northern Powerhouse city with luxury business travel destination CitySuites opening in February, while office space provider WeWork has selected Manchester for its first UK hub outside of London. Additionally, Salford was named the top location for startup growth in the country.
Roy Beckett, regional managing partner at Irwin Mitchell in Manchester, said: “It is of course very encouraging to see the Manchester economy performing well over the last three years, but it’s important to remember we are still at the start of the devolution journey here in the North West.
“Our new Metro Mayor, Andrew Burnham, now needs to build on the city’s strengthening skill base and momentum in the tech sector and increase education spending.
“Manchester is well diversified economy integrating a strong media sector, rich scientific development and high tech digital start-ups. The city’s prospects are bright, but we must maintain the momentum that we have built in the last three years.”