IMPLEMENTING CHANGE:
A NEW LOCAL AGENDA FOR
JOBS AND GROWTH In co-operation with the EU Presidency, Irish Government and Pobal
26-27 March 2013, Dublin-Kilkenny, Ireland
9th Annual Meeting
WORKSHOP D: ENABLING GROWTH AND INVESTMENT:
STRATEGY,SYSTEM AND LEADERSHIP
Baron Frankal Director of Economic Strategy, New Economy, Association of Greater Manchester Authorities,
United Kingdom
“Outside London, MCR is the city region which, given its
scale and potential for improving productivity, is best
placed to take advantage of the benefits of agglomeration
and increase its growth” – MIER
How great is Manchester?
• Accounted for 60% of all population growth across the North West in the last 10 years – reversing decades of population shift in the opposite direction
• Has largest travel-to-work area of any conurbation in the UK outside London, and 7 million people live within one hour’s drive
• Generates £46 billion of Gross Value Added on an annual basis, accounting for around 40% of GVA in the North West
• This is the equivalent of:
• West Yorkshire
• Wales
• Croatia
Governance looks good
• AGMA
• GM Combined Authority
• Local Enterprise Partnership
• Police and Crime Commissioner
• Manchester Family • New Economy
• Marketing Manchester
• Business Growth Group – MIDAS, Business Growth Hub & UKTI
• Greater Manchester Chamber of Commerce
• Collaborative governance
Governance and the economy working
together
• MIER
• Strategic sites review
• Enterprise Zone: Airport City
• Greater Manchester Strategy
• Investment Funds
• Strategic Assessment Framework
Key Sectors
• 163,000 jobs, GVA of £4.7bn p.a.
• Manchester Science Park, Christie Hospital, UK Biobank Health & Life Sciences
• 224,000 jobs, GVA of £9.0bn p.a.
• Deloitte, KPMG, PwC, etc. Financial & Professional
Services
• 63,000 jobs, GVA of £2.7bn p.a.
• MediaCityUK, Sharp Project Creative & Digital
• 105,000 jobs, GVA of £3.0bn p.a.
• 5 universities, Graphene hub, 100,000+ students Education
• 21,000 jobs, GVA of £0.5bn p.a.
• Man City, Man Utd, Adidas, Umbro Sport
• 38,000 jobs, GVA of £1.9bn p.a.
• NXP, Siemens, Holroyd Precision Advanced Manufacturing
Key Markets
• Boosting trade and creating new links
• The Wei Report – June 2012
• Manchester-China Forum China/Asia
• Collaboration with Abu Dhabi
• Economic evidence base produced
• Key sectors identified
Middle East
Investment Tools
• City Deal • Earnback model
• Investment framework
• Growth hub
• Skills and the local economy
• Low carbon demonstrator
• Inward investment beacon
• Evergreen
• Regional Growth Fund
Funding
Regional Growth
Fund
Growing Places
Fund
Urban Broadband
Fund, GM Transport
Fund, ERDF,
Evergreen, GIB JV…
Appraisal
STRATEGIC ASSESSMENT FRAMEWORK
To find consensus on projects that: •Provide good GVA (net economic impact) •Demonstrate value for money •Maximise private sector leverage •Deliverability
“Revenue” streams:
EZ, pooled business
rates, new homes
bonus, earnback…
Allocation and
Investment Pipeline
• Projects
• Projects
The Investment Framework
Net employment/GVA created (and VfM)
Transport investment Growth and
redistribution of
employment
Total Greater Manchester
employment impact
Connectivity
change
Feedback effect as
growth leads to
additional
congestion
Transport
One new workplace
aspiration
Controlled for what proportion is
likely to be delivered and then
ultimately occupied
Connectivity changes
Increased number of jobs
created from access to larger
business to business markets
Total Greater Manchester
employment impact
Displacement
Share of businesses
competed from other
conurbations.
Depends on sector
Feedback effect
as growth leads to
additional
congestion
Regeneration
One new house aspiration = 2.3 people
= 1.5 people of working age
Controlled for what proportion is likely
to be delivered and then ultimately
occupied
Displacement New GM residents vs
redistributed around GM
Local service jobs
induced local jobs
Supply side
changes
jobs from larger
labour markets (and
small amount from
changes in shape of
business to
business markets)
Total Greater
Manchester
employment impact
Feedback effect
as growth leads
to additional
congestion
Housing
What is needed from the public sector?
• Autonomous decision-making
• Infrastructure (transport & digital) investment, for example • £560m Northern rail hub
• £25m Growing Place fund
• £12m Urban Broadband Fund
• Investment in skills – to reduce the productivity gap
• Working within practical economic geographies
Community Budget
Early Years Transforming
Justice Troubled Families
Reducing demand today
Reducing demand for
generations
Reducing demand today and
tomorrow
Turning off the
dependency tap at
source
X
Better outcomes, lower cost
Health & Social Care
Better outcomes, lower cost
SAVINGS
Re-investment of resources across partners
SKILLS & WORKLESSNESS
AGEING POPULATION
And from the private sector?
• Working in partnership with the public sector
• Supporting the internationalisation process – e.g. knowledge of growth markets like China, India, Brazil, Middle East etc.
• Supporting growth in key target sectors – both national and internationally – i.e. helping domestic trade and export-led growth.