Manchester highlighted as an economic growth driver
MANCHESTER has been highlighted as the leading city for economic and demographic growth outside London by a new study, which also rates the Liverpool- Manchester-Leeds corridor as a strategically-important economic driver.
The study by Grant Thornton provides a ranking of English cities and districts according to their growth over an eight year period (2004 – 2012). London maintains nine of the top 10 best performing districts overall. However, outside of the capital, it places Manchester, Birmingham and Milton Keynes as measured by economic and demographic growth.
The analysis also assesses the quality of local growth – or ‘dynamism’ – to identify areas with a vibrant and dynamic economy capable of supporting future expansion, based on a basket of key drivers. Outside the capital, Cambridge, Reading and Manchester top the cities list of future sustainable growth.
The report also reveals a number of growth corridors – described as functional and large scale local economic areas – which are playing a significant role in the country’s overall growth levels.
Though predominantly stemming from London, the intra-city growth corridors include a number of other large cities at their core, creating a network of strategic linkages between high growth and dynamic areas.
The growth corridors identified are:
• Liverpool – Manchester – Leeds
• Nottingham – Sheffield
• Birmingham – Warwickshire
• London – Cambridge
• London – Milton Keynes
• London – Bristol
• London – Brighton
• London – Southampton
• London – Essex
Phillip Woolley, partner at Grant Thornton said: “The focus needs to be on re-balancing the economy and creating economic scale to drive sustainable growth outside of the capital, as much as within it.
“The growth corridors identified by the report highlight a number of implications for those local authorities and LEPs, both in and out of these corridors. For local economies within a growth corridor, it’s vital that their leaders and economic stakeholders collaborate to manage and deliver growth in a joined up and complementary way, and also consider their local strengths and assets in a broader context, be that human capital or local amenities.
“The economic impact of these corridors requires those cities outside of these areas to identify accessible growth corridors and understand how they can engage with them to grow their own local economy. For some, this could be about becoming part of the corridor over time through the creation of physical, governance and operational linkages.
“For others, it will be about identifying opportunities and services it could provide in relation to demand from the growth corridors, given its own economic selling points, this could be availability of land, housing or lower labour costs.”
The report highlights that diverse communities with a young and economically active workforce, coupled with strong transport and IT connectivity are also important factors for economically resilient areas.
