Better Together Greater Manchester Strategy 2013 - Manchester City Council
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2 3 Foreword 6 Introduction 7 A dynamic, changing landscape 10 The challenge 14 The opportunity 20 An ideal for living: our vision and objectives 22 Our response 24 Growth – Our priorities 48 Reform – Our priorities 65 Making it happen – Governance 66 Making it happen – Implementation 68 Making it happen – Managing performance 70 Making it happen – Investment Cover image courtesy of the University of Manchester Library
4 Foreword The Greater Manchester Strategy (GMS) It is the shared vision of our partnerships published in 2009 was the response to the across GM and the strategy will enable us to Manchester Independent Economic Review work together and galvanise the support of – the most robust economic analysis ever the local and national stakeholders who can undertaken of a city, led by global experts. contribute to our future success. It was a worthy response and formed the basis for the establishment of the Greater Part of the solution is building on the solid Manchester Combined Authority and the Local foundations we have made – capitalising Enterprise Partnership. It also provided a solid on the diversity and strengths of our assets platform for Greater Manchester’s engagement right across Greater Manchester. We must with government. continue to work hard to ensure that there are opportunities for all residents and all However, since that publication there have communities to contribute to and share in been significant changes, which have prosperity. The need to understand our unique prompted the need for a fresh analysis of our histories, heritage and challenges is central priorities. For all the evidence of progress, if we are to overcome those challenges and the problems we face remain profound. fulfil our potential. GM was built on radicalism The global economic downturn has created – the original modern city – and that sense of unprecedented and extremely difficult entrepreneurialism will be needed again if we economic conditions within which growth are to prosper in what is going to be a difficult has to be delivered, and these challenges are period. likely to persist. Yet the rapidly changing global economic context, the rise of new economies GM must become more confident and resilient on the world stage and the relative decline in its approach to our collective challenges. We of the West provide opportunities as well as must author our own future by making plans challenges. that we are confident will be implemented in the current financial climate. That is why we This revised strategy is about embedding a have taken the opportunity to look again at new boldness at the heart of all our collective our priorities, ensuring that our response to endeavours to enable us to rise to the the challenges that we face is one that will challenges and exploit opportunities, both promote growth and secure radical public internationally and closer to home. sector reform across Greater Manchester to deliver the prosperity that we seek for Our governance arrangements in GM continue everyone; for all our citizens and in all our to strengthen and mature. This has enabled places. us to secure a range of bespoke agreements with government in our City Deal, helping Lord Peter Smith, Chair, GMCA to empower us to make our own decisions Mike Blackburn, Chair, GM LEP about what is needed to support growth. These unique governance arrangements are supported by an increasingly streamlined set of delivery structures and a new cross-partner focus on public service reform. This refresh of the GMS sets out what can be done to realise Greater Manchester’s full potential.
6 Introduction We have achieved much in the years between Our investment in a 21st century transport 2009 and 2013, including the establishment of system, including the expansion of the the UK’s first Combined Authority and our Local Metrolink and our support of the Northern Hub Enterprise Partnership, agreement of the first rail schemes, demonstrates our determination City Deal and piloting new ways of delivering to continually improve the transport offer, public services through Greater Manchester’s and to encourage the development of status as a Whole Place Community Budget further transformative proposals such as Pilot. We have established a GM investment the devolution of rail franchising and the framework for growth, which includes the GM development of High Speed Rail. Evergreen Fund to be used to finance major developments and the £1.5 billion Greater But we are well aware that much more needs Manchester Transport Fund (GMTF), and have to be done if we are to realise the full potential taken responsiblity for allocating our Regional of Greater Manchester. This revised Greater Growth Fund resources and the Manchester strategy sets out our approach. Growing Places Fund. By prioritising projects on the basis of economic and employment benefits, we have been awarded funding that will better support the growth of GM businesses. Airport City has been designated an Enterprise Zone; MediaCityUK is a national hub for digital and creative industries; and we have secured investment in transformational initiatives, such as the establishment of the National Graphene Institute and the Sharp Project. We have created the UK’s first Low Carbon Hub to pioneer new ways to deliver a low carbon economy and have successfully worked with other cities to make the case for greater investment in the North on the basis that it will help to grow the UK economy as a whole.
8 A dynamic, changing landscape The circumstances in which we operate Although it has performed better than the have changed drastically since publication of wider North West region, Greater Manchester the first GMS in 2009. The global economic has not been immune to this global and downturn has created unprecedented national downturn. Unemployment has economic conditions, making the delivery increased by 24,500 since 2008 and the of GM’s ambitious growth objectives more number of active businesses has decreased challenging than ever. by over 1,000 whilst local housing markets remain stagnant. The 2008 GM Forecasting The recession has been much longer and Model expected the number of jobs to rise more severe than expected. The economies by 0.5% and GVA to increase by £2.3 billion of Europe have struggled, with a 0.6% fall in by 2012. In fact, job numbers have fallen by GDP in the Eurozone in 2012. As GM’s main 2.2% and GVA increased by just by £1.1 billion. trading partners, this has had a significant Despite the reductions in funding as a result impact on GM’s ability to drive growth. of the last Comprehensive Spending Review, Growth in the global economy has been public sector spend across GM is increasing, driven by emerging markets such as China, with reductions in spend in one area offset emphasising the importance of expanding by increases in others, particularly the costs and diversifying GM’s international reach. associated with welfare benefits. Significant reforms have been made to welfare, with the UK economic forecasts have been repeatedly total impact of welfare reform expected to downgraded. In 2010, the Office for Budget reach approximately £1 billion by 2015 across Responsibility (OBR) estimated that growth Greater Manchester. Local authorities have also would be 2.6% in 2012 and 2.9% in 2013. In seen their formula grant alone fall by 18%, with fact, 2012 saw a contraction of 0.1% and the other significant budgets such the Working OBR is now forecasting that the economy Neighbourhood Fund being closed altogether. will expand by just 0.6% in 2013. In addition, significant spending reductions have been The effects of the economic downturn, made across government with a total impact the reductions in public sector funding, of approximately £123 billion. and the broader impacts of welfare reform together present a particular challenge for The North West has been one of the individuals and families living on low incomes, hardest hit regions with a 0.7% decrease in particularly in the conurbation’s most deprived employment in 2011 and only a 0.3% increase neighbourhoods. The cost of providing public in GVA in the same year. The Northwest sector services is becoming increasingly Development Agency closed in March 2012, unsustainable, with a greater proportion spent which saw the loss of their funding, worth on the costs of dependency and less on £500 million at its peak. opportunities to increase growth and reduce the demand for those services. In the light of these global, national and local changes, we must review and refresh our strategic approach.
11 The challenge Manchester’s population is the fastest Despite the recession, Greater Manchester’s growing in the UK, which presents a massive economy has been shown to be more robust opportunity to link the jobs we create with high than most of the rest of the UK economy. quality places to live so people are encouraged Greater Manchester generates £48 billion GVA, to stay and contribute to our success. But a 4% share of the national economy, and is the there are also huge challenges: an ageing UK city region outside of London most likely to population, concentrations of unemployment be able to increase its long-term growth rate, and low skills and changes to the welfare to access international networks and enjoy system mean that demand for services will strong connections to the rest of the world. only increase without radical reforms to However, given the size of the GM economy, improve the effectiveness of services, increase we should be achieving more. We are currently the self-reliance of our people and reduce a ‘cost centre’ for the UK, requiring £22 billion demand for those services. of public spending but only generating £17 billion in taxes. The aspiration is for Greater The rapidly changing global economic context Manchester to close and then eliminate that and the rise of new economies provides £5 billion deficit to become a net contributor to opportunities as well as challenges. But it is the national economy. clear that 21st century cities like Manchester need to do better even just to stand still. The Manchester Independent Economic We need to anticipate what is coming and Review (MIER) estimated that a quarter of the be much bolder in our response. productivity gap between Greater Manchester and the UK as a whole is caused by higher than average levels of worklessness and low levels of economic activity. The other three quarters is caused by lower levels of economic output, with people in work not as productive as elsewhere in the country. Low skill levels are a key contributing factor to this. Greater Manchester generates £48 billion GVA, a 4% share of the national economy
12 MediaCity UK
13 The challenge The proportion of GM residents with no Put simply, we need to reduce demand for qualifications is higher than the UK average. public services by helping our residents to Across GM, 11.6% of people have no become more self-reliant, get back into work, qualifications compared to 9.9% across the gain better quality work and remain in work. UK. This means that a greater proportion of We need to challenge the social norms, which people in GM are unlikely to have the skills foster dependency on support, and promote a necessary to be successful in the modern culture of resilience and enterprise. We need economy and, as a result, more likely to be to align our skill base with the jobs generated workless and suffer the effects of deprivation.through economic growth to increase the productivity of GM’s businesses. We need to Unemployment has risen sharply since the understand the changing demand for labour start of the recession. The number of people – by 2020, half of all jobs will require Level 3 claiming Jobseeker’s Allowance (JSA) in skills or above – and we need to ensure that Greater Manchester almost doubled from our residents have the skills required to meet 41,845 in January 2008 to 79,275 in June 2013. the demands of employers. Young people have been severely affected: one-quarter of JSA claimants are aged 16-24 and the unemployment rate for that group We must ensure that the has risen from 6.3% to 9.8%. Long-term jobs are available and unemployment has also risen dramatically with the number of people claiming JSA for accessible to our residents more than six months more than tripling over by repositioning Greater threefold from 11,440 in January 2008 to 38,250 in June 2013. Manchester within changing global markets, creating the conditions for growth to ensure that it is seen as a place in which to invest, do business, live and visit.
14 The opportunity
15 The opportunity Creating the conditions for growth We need to understand the fundamental shift in the market and how business models are changing – this will allow us to re-examine Addressing economic inactivity is at the heart the role and function of our places and of our strategy and goes hand in hand with the offer that they can make. We need to stimulating growth to ensure that the jobs are understand market requirements and invest created and safeguarded for people at all levels what scarce public resources are available to of the labour market. support partners from the private sector and social entrepreneurs in the delivery of those The MIER identified that GM is the best-placed requirements. We need to anticipate the city outside London to increase its long-term demand for flexible working space, advanced growth rate based on its size and productive and low carbon technology, access to research potential. We need to create the conditions and development, science and innovation to that make Greater Manchester an investment ensure that Greater Manchester is in a position destination of choice, with all parts of the to exploit its assets and meet the changing conurbation fulfilling their potential and all demands of the global economy. residents able to contribute to and benefit from that growth. In the current financial climate, with restricted funding and changing business models, there is an increasing emphasis on value and flexibility. To enable GM to compete, we need to develop a clear, spatial and sectoral understanding of occupier demand, both now and in the future, in relation to commercial, industrial and residential development. Our investment strategy must be based on an understanding of the offer required and the creation of investment destinations that are responsive to market demand.
16 The opportunity Living quality lives in quality places The natural environment in GM brings great benefits and we must protect and enhance our blue and green infrastructure to improve Creating quality places will be critical to quality of life for our residents. The natural success. We want this strategy to help deliver environment can also contribute significantly benefits right across Greater Manchester, to economic growth, creating attractive places recognising and encouraging its wide, healthy where people want to invest and work, through and hugely productive diversity, whether its role in the visitor economy and through the understood as ten local authority districts creation of jobs and businesses that support or as a broader collection of communities. our green and blue assets. This means making the most of the distinct cultures, constituent parts and communities of We must make our neighbourhoods Greater Manchester. sufficiently attractive to attract and retain the diverse labour market required to support It’s also important to recognise the our growth objectives. Our neighbourhoods importance of the relationship between GM need to be accessible and well-connected, and its surrounding areas; such as Cheshire, enabling residents to access employment, Derbyshire and Lancashire, and its access to education, training and other opportunities. other major conurbations such as Merseyside Excellent schools and colleges, along with our and the Leeds and Sheffield city regions. world class cultural, sports and other assets We are positioned at the heart of the North, will enable us to compete with the best cities along the axes of the main national motorway around the world. We will work with our corridors and key railway connections – Greater communities, the police and the fire service to Manchester’s productivity and prosperity is tackle crime and anti-social behaviour, creating intimately connected with the wider economic clean, green, healthy, and safe neighbourhoods growth potential of the North. for our people to live in and promote independent and resilient communities. We We need to develop the supporting must also revitalise the town centres that lie at infrastructure to create and strengthen local, the heart of our communities, and continue to national and international connections. This will support our more deprived neighbourhoods. help to expand the depth and breadth of our catchment to ensure that businesses are able to access their supply chains and move goods and services sustainably, efficiently and cost- effectively. We must also ensure that energy, water, waste and digital infrastructure is in place to support growth.
17 The opportunity Reforming public services Building on the outputs of the Whole Place Community Budget pilot and working with partners across GM and with Whitehall we will The refreshed GMS places greater emphasis implement a public service reform programme. on the need to reform both the efficiency and Some of our residents and families face a effectiveness of public services. This will help series of complex and challenging issues – GM residents get back into work and to remain and they require similarly complex packages in work, both in the short-term, through our of support. Our current models of public work in relation to complex families, offenders, service delivery are simply not fit to provide health and social care and worklessness, and this, particularly given the scale of planned also in the longer-term through reform of early reductions in public spending. By working years services. collaboratively and creatively with Whitehall, the voluntary sector and social enterprises, we We need to begin by working with parents to will develop new ways of working, to deliver make sure that every child gets the best start more effective services. Together we will in life and can arrive at school ready to learn. implement a radical programme of reform to Whole family approaches need to provide encourage self-reliance and reduce demand for co-ordinated and effective support to break the public services. The benefits of this approach cycle of poverty that too many families face. will not only be felt in the economy and in We also need to respond to the increasing public sector budgets, but by residents and pressure on services for the elderly, frail communities through improved quality of life. and vulnerable by exploring new models of integrated health and social care, and securing the best outcomes from acute services. And we need to target public health care interventions to reduce the number of people requiring those services in the first place and stem the flow of demand.
18 The opportunity Supporting business The low carbon challenge Our success will depend on the capacity of Fundamental to our approach to growth our businesses to grow. We need to help our must be a successful transition to a low businesses to adapt to the changing demands carbon economy. Failure to adapt will have a of the future, embracing the drive towards catastrophic effect on our ability to compete, a reduction in carbon emissions, pioneering threatening infrastructure, disruption to technological developments, and responding businesses and services and hardship for to changing customer demand. We need to those more vulnerable neighbourhoods be much more forward thinking in relation or groups. We must ensure that our city to newly emerging sectors of the economy; region is resilient to the changes, protect our such as science and technology, to understand communities from the extreme weather events where the potential for growth and jobs lies, that are now unavoidable and plan for a future and the offer and support required to turn that in which the availability and price of resources potential into investment. is significantly more volatile. With more than 250,000 of our households living in fuel We must exploit Greater Manchester’s poverty, and with energy prices a significant unparalleled expertise in academic research cost to businesses, the delivery of an and development in key enabling technologies affordable, efficient energy infrastructure will to position the city region as a world-class not only increase prosperity but will also help centre. We must also bridge the gap between to maximise jobs and growth. The low carbon knowledge and production to ensure that more agenda also presents huge opportunities to of the innovations developed here are taken grow our technological, knowledge and cultural to the market place within GM, enabling us to economies and develop new skills and strong retain the jobs and growth resulting from those supply networks, creating jobs and businesses. developments. We also need a greater focus on Over the last two decades Greater internationalisation – developing and Manchester has rediscovered strengthening our links with new and growing the boldness it has had for over markets such as China, India and the Middle East, whilst maintaining our links with two centuries. This strategy is established markets in Europe and North about embedding that boldness America, to increase exports and encourage at the heart of our collective greater inward investment. endeavours to both exploit our opportunities and rise to the challenges we face.
19 Image courtesy of Marketing Manchester
20 An ideal for living: our vision and objectives
21 By 2020, the Manchester city region will have pioneered a new model for sustainable economic growth based around a more connected, talented and greener city region where all our residents are able to contribute to and benefit from sustained prosperity and enjoy a good quality of life. We will secure our place as one of Europe’s premier city regions, synonymous with creativity, culture, sport and the commercial exploitation of a world-class knowledge base. We will compete on the international stage for talent, investment, trade and ideas. We will be seen and experienced as a city region where all people are valued and are able to fully participate in and benefit from the city region’s success. We will be known for our good quality of life, our low carbon economy and our commitment to sustainable development alongside our outstanding natural environment. We will create a city region where every resident, neighbourhood and every borough can contribute to and benefit from our shared sustainable future. We will continue to grow into a fairer, healthier, safer and more inclusive place to live, known for excellent, efficient, value for money services and transport choices. We will deliver focused and collegiate leadership of Greater Manchester based around collaboration, partnerships and a true understanding that through collective and individual leadership we are strong. Manchester is one of the most successful cities in the UK. We want to become one of the most successful cities in the world. The priorities set out in this refreshed GMS describe a programme of bold, collective action to help shape that success.
22 Our response
23 Our response The 2009 Greater Manchester Strategy The quality of Greater Manchester’s places underpins our ability to deliver on both our set an ambitious vision for 2020 – to growth and reform agendas. To attract talent secure long-term economic growth and improve our existing residents’ quality and enable the city region to fulfil its of life we must create safe, sustainable, economic potential, whilst ensuring that healthy places for our communities to live our residents are able to contribute to and build enough houses of the type and and share in that prosperity. tenure needed. Further, we will ensure a more integrated transport network that better connects neighbourhoods with areas of Our vision remains, but we must reassess employment and business growth. And we will our approach to achieving it. A precondition is protect and enhance our natural environment, sustainable economic growth, which in turn both to improve quality of life in all of our requires higher productivity from a better neighbourhoods and in recognition of its role in functioning labour market. We must increase economic growth. self-reliance and reduce demand for public services, and ensure that all parts of the city The Greater Manchester Strategy sets out a region and its people enjoy the improved strong, ambitious vision for the city region and opportunities that a stronger economy brings. is intended to galvanise partnerships across GM, bringing together a range of stakeholders The route to growth lies in creating the to deliver a shared set of strategic priorities conditions that make GM a destination for based on the twin themes of growth and investment, in consolidating the existing reform. We will work closely with those business base and in securing a much higher stakeholders – both with government growth rate in key sectors where we have the and our local partners – to develop robust assets and advantages to succeed nationally implementation plans that will enable us to and internationally. deliver those ambitions collectively. The key to sharing prosperity is in ensuring that more of our people are able to access the labour market, remain in work and develop the skills required to progress within that labour market, improving both productivity and self- sufficiency and reducing demand for public services.
24 Growth
25 Creating the conditions for growth Reshaping our economy to meet We must support our key sectors, those in new, global demands which we have a competitive advantage, and leverage our assets to grow those sectors The global economy is going through profound further. We have a concentration of critical changes. These changes threaten our assets in the health and life sciences sector, prosperity if we fail to adapt to them, but offer including Manchester Science Park, The significant opportunities if we do. We must Christie Hospital and UK Biobank, supporting anticipate changes in global demand and put 163,000 jobs and creating GVA of £4.7 billion. in place the economic conditions that position Outside London, Manchester is the UK’s Greater Manchester to succeed. main centre of financial and professional services, employing over 190,000 people We must ensure that our offer is informed and generating £9 billion per year of GVA. and driven by investor demand, offering Our creative and digital sector accounts for value-based, flexible workspaces that 105,000 jobs creating GVA of £4.7 billion each meet the changing demands of investors year with national growth opportunities at in locations where the market wants to go. MediaCityUK and the Sharp Project. Education We must put in place the technology offer employs 105,000 people and adds GVA of to support innovation in business products £3.0 billion per year to the city. The city’s five and service delivery across the public and universities have over 100,000 students, the private sectors, supporting the development of largest concentration of students in Europe. creative clusters and centres of research and The discovery of Graphene at the University of development. We must build on the benefits Manchester is a global growth opportunity. of our agglomeration economy to strengthen our Regional Centre, extending it to the east and west, and capitalise on the assets in the ‘Manchester Corridor’, our central business and education district, critical to the flow of people, goods and ideas through the Greater Manchester area.
26 Creating the conditions for growth The low carbon and environmental goods and We will: services sector already employs 38,000 people »» identify the land offer required for and is one of the fastest growing sectors in the the development of commercial and UK. Manchester is an internationally famous industrial space that offers flexibility of sporting city, home to truly global brands in use and cost efficiency in locations where Manchester City and Manchester United, and the market wants to go, supported by with firms such as Adidas and Umbro having the infrastructure required to help a strong presence in the city. The wider sport businesses to grow and flourish; sector now employs 21,000 people. And, despite the decline of the manufacturing »» employ a cohesive, structured and sector, over 37,000 people now work in evidenced approach to attracting and advanced manufacturing in the city region, in growing businesses with the greatest firms including Siemens and Holroyd Precision. growth potential; and »» collaborate with GM’s firms to help them expand, working with the grain of their strategic plans to build bespoke initiatives in markets and sectors where GM firms have comparative advantages and existing assets.
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28 Creating the conditions for growth Delivering an investment strategy We will develop a market-facing investment strategy that: based on market needs »» is based on an understanding of the Previous investment models are broken; inherent catchment of areas to identify we need to develop alternative approaches the offer required and create investment to establishing our places as investment destinations responsive to market demand; destinations. Our investment strategy will »» enables us to work with the private sector be based on a clear understanding of the to bring forward an appropriate offer on the role and function of places and the offer that sites where the market wants to go; those places can make. It will also include an assessment of the infrastructure required »» helps us to create a wider portfolio of to support that offer and a review of the land sites that are attractive to investors, available to support housing and employment meet developer requirements and drive growth. investment in priority areas for growth and regeneration; Our starting point is to identify our strategic »» is based on a transparent framework priorities for growing the economy and to determine investment priorities and then to develop a pipeline of investment maximise the return on investment; opportunities which are attractive to investors and developers and which drive investment in »» uses available public funding and assets in priority areas for regeneration, thereby creating the most effective way; and jobs, aligning the funds that are available to »» applies a key test of sustainability based on enable them to be delivered. private sector leadership of development opportunities, with public sector investment deployed to support this, in accordance with established investment criteria.
29 Creating the conditions for growth Revitalising our town centres We will: »» build on the opportunities presented by Our town centres lie at the heart of the changing market to develop an offer communities but are facing a series of that meets emerging demand, including fundamental challenges. The growth of the provision of value-driven flexible e-commerce and large out-of-town retailers work space, access to high-speed digital has left our town centres struggling to connectivity and integrated public services; adapt – and this trend is set to continue and accelerate. In fact, the amount of retail space »» establish creative clusters, strengthening required within town centres is set to contract the links with educational establishments to by nearly a third by 2020. We need to examine create pathways to business incubation and the unique characteristics of our town centres job creation; and redesign them to both consolidate existing »» broaden the range of investment and strengths and develop an offer that meets activity in our town centres through emerging demand. investment in the public realm and the physical and natural environment and through diversifying the day- and night-time economies to include a safe and welcoming residential, leisure and hospitality offer; »» maintain a critical mass of activity within the town centre cores, supporting shopping centres at risk, fostering the growth of independent traders and reducing operating costs; »» provide the right organisational support and capacity in terms of staff and expertise and financial investment; »» provide direct financial support, through our market-facing investment strategy; and »» develop and implement investment models and toolkits to support local authorities as they work with landlords and address issues such as vacant units.
30 Image courtesy of Manchester Pride
31 Creating the conditions for growth Creating the spaces and places that We will develop a GM approach to meeting future housing and employment land will nurture success requirements, based on: Greater Manchester must be competitive, »» an understanding of existing and future and this involves ensuring that land is available requirements based on the type of growth in locations that are attractive to the market. forecast and market demand for both Failure to provide appropriate sites in areas employment and housing land; and where the market wants to invest, both for »» the development of spatial options to meet housing and employment uses, could mean that demand based on viability, strategic losing development and investment to other fit, transport and other infrastructure areas. Our approach to investment represents implications. a definitive move away from a grant culture to a self-sustaining investment approach founded on the ability to secure the benefits of local growth – our Enterprise Zone is a demonstration of this. We need to understand the role of our places and the relationships and connections between them to ensure that we take an informed, integrated approach to spatial planning across the city region.
32 Creating the conditions for growth Stimulating and reshaping our We will promote housing growth through three inter-related work programmes, overseen by housing market our innovative Housing Investment Board, which brings together key decision makers Greater Manchester has seen a dramatic from GM and the Homes and Communities decrease in new housing completions since Agency. Our three work programmes are: the peak of the housing market in 2007 – new creating new development models; tackling supply is running at around 3,000 per annum financial barriers; and easing the development rather than the 9,000-10,000 we need. A lack process in Greater Manchester. of available mortgage finance and difficulties in accessing development funding (problems We will: common across the country) are the key barriers to overcome. Each passing year of »» test new business models based on under-delivery adds to the pressure on the building new homes for market rent; existing housing supply, making it more »» work on products which offer alternatives to difficult for new and existing households to the traditional mortgage as routes to home find and afford homes that fit their needs and ownership; and aspirations. »» ensure our land supply continues to offer Adding to the pressure, the average annual deliverable opportunities, including on public household energy bill is approaching £1,300 sector land; and seek alternative sources and nearly a quarter of a million households are of investment in new housing, including in fuel poverty. Transforming existing stock and institutions such as pension funds. using new housing development as a catalyst for low carbon infrastructure will be key to We are also improving the quality of existing providing healthy, safe, warm and affordable and new housing stock by promoting energy homes. efficiency investment measures to eliminate fuel poverty and make our houses healthy, GMCA has committed to a target of 9,200 warm, affordable and fit for purpose in a low new homes per year by 2015, and retrofitting carbon economy. This will be complemented 25,000 each year. We also recognise the by initiatives such as the successful Energy employment and economic gains to be Switch campaign. secured from a restored house building and retrofit programme. We will continue to drive new thinking and innovation to ensure that Greater Manchester offers existing and potential residents a place to live that meets or exceeds their expectations and which they can afford.
33 Creating the conditions for growth Crafting a plan for growth and »» match the scale and distribution of infrastructure investment in a more planned, infrastructure co-ordinated and cost effective way for long term benefit; It has long been recognised that infrastructure1 drives competitiveness and economic growth »» identify an agreed and shared set of by increasing productivity, reducing costs and infrastructure priorities, supported by all GM extending the reach of business. However, districts; infrastructure planning traditionally has been carried out on a site-by-site basis and the UK’s »» future-proof investment to ensure that next financial, political and planning systems have generation energy requirements are met no experience or expectation of a place-based and that infrastructure provision remains fit co-ordinated programme of capital investment. for purpose over the coming decades; and »» explore the use of funding mechanisms Different parts of GM will experience different such as the UK Guarantees scheme, pressures according to their geography, an ‘Earn Back’ model, the Community history and population. Within GM, strategic Infrastructure Levy and a joint venture economic priorities and infrastructure ‘pinch with Green Investment Bank to address points’ are frequently found together. By infrastructure barriers, supporting the building on the principles in the GM Transport delivery of major investment projects. Fund, recognising the interconnectivity and interdependency of different forms of infrastructure and targeting interventions, We will: we will ensure that ongoing growth and the »» prepare an integrated infrastructure plan (by priorities outlined in the GMS are delivered mapping the investment needed in current sustainably. This will enable GM to: and new infrastructure against ‘growth’ locations) to support resilient low carbon growth; »» develop new ways of funding infrastructure investment to support growth, including the UK Guarantees Scheme, an ‘Earn Back’ model and the Community Infrastructure Levy; and »» implement a place-based, co-ordinated and prioritised programme of investment. 1 Critical infrastructure includes utilities, digital, energy, water and green infrastructure
34 Creating the conditions for growth Improving connectivity locally, »» the initial £1.5 billion Greater Manchester Transport Fund (GMTF) includes new nationally and internationally Metrolink lines, transport interchanges, rapid bus system developments and Greater Manchester has consistently placed connectivity and transport investment at strategic highway schemes. It is estimated the heart of our economic strategy. We will to deliver an increase in GVA of £1.3 billion continue to focus investment on the city per annum by 2021, whilst also securing region’s strategic transport network to further improved access from the most deprived enhance local, national and international communities and carbon benefits; connectivity. This investment strengthens and widens GM’s labour market, which is »» The ‘Earn Back’ model provides scope to critical to our future success and enables GM extend GMTF spending power by up to businesses to reduce costs by moving people a further £500 million by 2020, enabling and goods more quickly, easily and reliably. the delivery of further transport priorities that offer significant GVA potential, such There is already significant investment in as the Metrolink extension to Trafford our transport network, both underway and Park and funding for SEMMMS (the A6 to planned, which will deliver a transformational Manchester Airport relief road), which will step-change in connectivity: deliver enhanced access to the Airport City Local Enterprise Zone; »» The Local Sustainable Transport Fund provides over £50 million investment in active travel, smarter choices and intelligent transport technologies, which aims to at least double the levels of commuter cycling in Greater Manchester and enable all commuters to make more sustainable choices in how they travel; »» The £560 million investment in the Northern Hub rail scheme, scheduled for delivery by 2019, is estimated to have an economic impact of £2.1 billion each year across the North of England;
35 Creating the conditions for growth »» the second phase of High Speed Rail, We will: scheduled for 2033, offers a GVA boost of £1.2 billion per annum for the Northern »» continue to invest in GM’s strategic economy, with the Piccadilly and the Airport transport network to link people and stations poised to deliver massive growth neighbourhoods with jobs, and businesses and regeneration benefits for the wider to their supply chains and markets; area; and »» ensure businesses and residents can »» Manchester Airport, which provides direct take advantage of improved transport employment for 19,000 people and has connectivity to access education, training an estimated annual £1.7 billion impact on and employment opportunities across GM the UK economy, will continue to act as a through ongoing public transport service major driver of future growth, both directly development work, further review of travel through the Airport City Enterprise Zone pricing and the roll-out of smart travel and through the development of new trade technologies; routes in support of GM’s target export »» continue to work closely with local authority markets. partners and businesses to ensure that The creation of the Combined Authority local public transport and active travel provides greater capacity to further enhance provision, supported by recent and planned and integrate our strategic transport network. interchange investment in a number of Key opportunities include: locations, best supports the regeneration of our primary town centres; »» securing greater control over the development of rail services through »» develop new technologies to provide smart refranchising to ensure that rail service ticketing and real time travel information provision is clearly aligned to support the systems that enable commuters to economic priorities of GM and the North secure full network benefits of the of England; transport system, and which delivers network efficiencies and environmental »» innovative arrangements for highways sustainability; and coordination and collaboration, in partnership with all ten highway authorities »» explore new technologies and systems, and the Highways Agency, to maximise the such as the electric vehicle charging efficiency of the highway network; and programme, to reduce reliance on fossil fuels and enable the acceleration of »» establishment of future strategic freight electrification of rail, freight, public transport interventions across road, rail and water, and private vehicles; and in support of strategic economic growth points such as Airport City, Trafford Park and »» deliver a step-change in smarter travel Port Salford to best align the activities and choices and active travel (cycling and investment priorities of the commercial and walking). public sectors;
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37 Creating the conditions for growth Placing our city region at the leading edge of science and technology Our assets include: »» world-leading research and development The world is changing rapidly. The growth of in areas including advanced materials, emerging economies such as China and India health innovation including data intensive and global trends such as urbanisation, an healthcare, energy including nuclear, ageing population, climate change and scarcity biotechnology, high performance computing of natural resources are happening at an and chip design, and interactive technology unprecedented pace and scale. Productivity and robotics. These technologies can be will be driven by the next generation of exploited to produce the next generation advanced products that respond to changing of industrial products across sectors, be global demand. The winners will be those who they electric cars, smart energy networks, can create and produce the multi-purpose mobile phones or medical devices; technology that makes those products possible. »» the people, organisations and networks surrounding the research excellence that Greater Manchester’s leading experience allow ideas to be taken ‘from lab to market’; in urbanisation, agglomeration, and »» the Nobel-Prize-winning discovery and technological evolution puts it in a strong commercial exploitation of Graphene, the position to anticipate that growing demand strongest, lightest substance known to and to adapt itself to supply into it. Science, man. This is the clearest manifestation technology, and research and development of our expertise in advanced materials, are at the heart of Greater Manchester’s which is being supported through the plans for growth. development of a £61 million Graphene Hub; and »» one of the world’s largest clusters of health research, practice and commercial development, along a corridor area that is home to Manchester’s universities, hospitals, science park and innovation centres. Greater Manchester’s scale and access to demand information via the NHS gives us one of the world’s largest test-beds for research. Products developed in Greater Manchester via these routes, such as Christie’s Proton Beam Therapy service*, indicate the scale of the future *Value of £150 million, estimated GVA £10.7 million after 5 years (100 employees) plus additional GVA economic potential. of £2.4 million.
38 Creating the conditions for growth Our growth strategy will focus on how our We will: public, private and academic institutions can »» increase the profile and credibility act collectively to translate our science and of GM science; technology assets into additional economic output for Greater Manchester and the UK. »» expand and accelerate the commercialisation of research; Using an evidenced understanding of the »» improve GM’s science and technology science and technology assets required by a skills base; changing global market, we will focus on our core research strengths to meet the needs of »» increase entrepreneurship that market and maximise economic impact. and business growth; »» improve the productivity of our existing science base; and »» bring public, private and academic institutions together to commercialise research and development at pace and scale.
39 Creating the conditions for growth Building our global brand This diversity of our assets can attract people to GM and investment in our cultural and A distinctive sense of place is a critical factor heritage offer is a key driver of innovation and in attracting talent, investment and visitors. The growth. Focusing on both the creation and visitor economy alone is worth over £5.8 billion promotion of genuinely distinctive elements a year to Greater Manchester, and in the last of Greater Manchester’s offer will serve to year more than 3,000 jobs were created as a raise our profile within priority national and result of inward investment. international markets. We have a strong story to tell, but it is not only our past that has Each part of Greater Manchester has unique relevance. Recent developments, such as the selling points – its diverse communities, Manchester International Festival, have made landscape, places, tolerance and welcoming a significant global impact and the discovery nature are key assets. From the shock city of Graphene showcases our strengths in of the Industrial Revolution to MediaCityUK; innovation. from physicist James Joule to the computer pioneer Alan Turing; from the Free Trade Perceptions of our city region have been movement to the political heritage of Peterloo, improving over recent years, but there is still the co-operative and trade union movements; more to be done. In 2011, Manchester was from the Hallé to the Stone Roses; from Fred ranked 29th in the Anholt City Brands index, Dibnah to Anthony Wilson; from Fred Perry assessed against 50 international cities. This to the sporting successes of the Velodrome, saw us move ahead of Dubai and Dublin, pull Amir Khan and premier league football – an extra three places clear of Edinburgh, and Greater Manchester has been the formative close the gap on Brussels and Chicago. environment that continues to generate unique and distinctive traditions, cultures and people.
40 Creating the conditions for growth Visitor numbers have been increasing, with We will: figures for 2011 showing a 22% increase »» continue to forge a distinctive sense of in domestic visitors to 2.6 million, and an place for Greater Manchester focusing on increase in international visitors of 15% to the quality of our business, cultural and 936,000. Growth in leisure visitors has been lifestyle offer, led by and drawing on the particularly strong, demonstrating the strength expertise of Marketing Manchester; of the events programme and the wider visitor offer, as well as the impact of co-ordinated, »» work with key private and public sector multi-channel marketing activity, led by our stakeholders, focusing on our strengths own Marketing Manchester team. This, in and creating targeted, high impact turn, offers significant potential to grow our multi-channel marketing campaigns that hospitality offer. showcase Manchester as a destination to live, visit, study and invest; Manchester’s profile as a business destination »» attract international conferences and is also rising, with the city named as the most deliver high quality mass spectator and competitive business location in Europe by mass participation events; KPMG in 2012. In the financial year 2012-13, just over half of successful projects and 70% »» improve the skills of the hospitality and of jobs safeguarded, created or relocated were tourism sector’s workforce to support the a result of foreign direct investment. development of our world class visitor economy; and »» create an ambassador network that reflects the ability of Greater Manchester to grow, attract and retain talent, and equip them with the tools necessary to promote the city region.
41 Supporting Business
42 Image courtesy of Jonty Wilde / Marketing Manchester
43 Supporting Business Supporting business growth with We will: a strong, integrated offer »» we will make it simpler for businesses to access the support they need by We will engage with businesses more creating a differentiated business support proactively and effectively using our combined environment, driven by the needs of local, expertise in business support ensuring that national and international employers; available resources are targeted on effective support for inward and indigenous investing »» use specialist advisors to provide a firms, on attracting more entrepreneurs, start- cohesive, structured and evidenced ups, capital and talent, and on accelerating approach to attracting and supporting the growth of the 90,000 businesses with businesses with the greatest growth the greatest potential to expand. With proper potential and helping our SMEs develop and incentives, firms that are already successful grow; could become even more so. »» help businesses to access finance, through advisory services and through the Working with partners such as the development of a comprehensive suite GM Chamber of Commerce and other of publicly supported alternative debt organisations who support business growth, and equity finance products, specifically we will target activity on businesses with designed to encourage business start up growth potential and SMEs, which provide and growth; most of Greater Manchester’s private sector employment and economic output. This »» encourage businesses to support each requires a private sector-led joining up of other through mentoring programmes and the various skills, business support, trade growth groups; and investment services available to Greater »» offer specialist help and advice to promote Manchester’s firms, as well as a common business innovation and the adoption of focus on a bespoke, agreed and evidenced superfast broadband technologies; plan for support. This plan will be driven by the global market opportunities that offer »» provide specific support to manufacturers the greatest trade and investment prospects and their supply chains; and which respond to Greater Manchester’s particular strengths, building on our domestic and international assets.
44 Supporting Business »» work with Government departments and »» use our engagement with GM businesses their contractors to enhance the impact to understand their skills, workforce of national programmes in GM, including development and employment needs in Growth Accelerator, the Technology order to develop, on a multi-agency basis, Strategy Board’s SMART and Innovation holistic packages of support; and Voucher programmes and the Growth »» create pathways between our education Voucher programme for which we will seek systems and the workplace, supporting to establish GM as a pilot site; the development of long-term relationships »» encourage business start-ups with growth between schools, colleges and GM potential and social enterprise start-ups in business to grow the ambitious workforce deprived communities; employers require as our economy strengthens and expands. »» extend and deepen the international trade, investment and connectivity of GM’s businesses, building on existing links and assets;
45 Supporting Business Improving our international The Greater Manchester Internationalisation competitiveness Strategy identified six priority markets based on the size of their economies and future With an economy worth £48 billion, a growth prospects; the extent of their sectoral population of 2.6 million people, and over strengths; the ease of doing business in them; 90,000 successful businesses, Greater and whether they have any existing ties with Manchester already competes on a global GM. Those priority markets are the USA, scale. It also has a strong track record in Europe, China, India, the United Arab Emirates securing foreign direct investment, with its (UAE) and Brazil. share of the UK market rising strongly from 3.4% in 2005-06 to 5.9% in 2009-10, well There is already significant public investment above the regional average and GM’s relative in this agenda but more integration and focus contribution to the UK economy (of 4%). is needed on how public funding is invested In an increasingly global economy, it is vital – GM needs to work more closely with key that more firms in GM establish international partners to develop a deeper and more trading and investment and that we secure co-ordinated approach. more inward investment. However, evidence suggests that GM firms are less international We will: than expected for a conurbation of its size, and there is significant scope to increase »» maintain at least the level of international connectivity and further open GM’s economy activity with the main current markets of to foreign trade and investment opportunities. Europe and the USA, given the size of those markets and the strong relationships that We need to do more to exploit our potential. already exist; We need more businesses to sell their goods »» develop robust and tailored arrangements and services overseas, more investment from to radically increase international activity overseas, and closer collaborative research with the growth markets of China, India, links with other innovative economies. Brazil and UAE; and GM must make improved use of its »» explore new partnerships, building on our international assets. This includes Manchester asset base, to co-ordinate our approach to Airport, its international brands, and the trading investment, enabling us to penetrate these and investment of GM-based large firms. markets. Key sectors where we have a comparative advantage to be exploited and accelerated include health and life sciences, financial and professional services, creative and digital, education, sport, culture and heritage and advanced manufacturing (including low carbon technologies).
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