Action on health inequalities and net-zero will drive economic growth in Greater Manchester, new report finds

A new report has identified that action on tackling health inequalities and achieving net-zero CO2 emissions are key to delivering sustainable economic growth in Greater Manchester over the next decade.

A panel of economists, chaired by the University of Cambridge’s Professor Diane Coyle, reached their findings as part of an update to the 2019 Greater Manchester Independent Prosperity Review.

The report highlighted how poor health outcomes for city-region residents were having a negative impact of the productivity of businesses, a problem that has been magnified by the recent Covid-19 pandemic. The review found that up to a third of the working age population were economically inactive in some parts of Greater Manchester, with ill health a key factor in driving this statistic.

Economists also identified that the opportunities presented for local businesses from decarbonisation were also not being fully realised, despite commending the city-region’s 2038 carbon neutrality target. The report called on Greater Manchester’s leaders to accelerate decarbonisation and undertake the necessary investment in innovation, infrastructure and skills needed to achieve this.

Action and health and decarbonisation were given as the two leading factors requiring action in order to improve the city-region’s poor productivity. Despite gains made in the last decade, economists highlighted that productivity in Greater Manchester continued to lag behind the UK average.

Professor Diane Coyle, Bennett Professor of Public Policy at the University of Cambridge, said:

“Improving productivity – both within Greater Manchester, and between Greater Manchester and the rest of the country – is still vital. Without improved productivity, wages and job quality cannot improve and living standards cannot rise over time.

“The pandemic underlined the fundamental importance of health and its link to economic performance. Sustainability should be another priority, particularly given the opportunities for investment and jobs in the net zero transition.

“Policies must connect up with decision-making to deliver the right kind of growth for everyone in the city-region.”

The report’s findings are set to inform an update to the Greater Manchester Local Industrial Strategy, due to be published later this year.

Cllr Bev Craig, Greater Manchester Combined Authority (GMCA) Portfolio Lead for Economy, Business and International, explained:

“Greater Manchester has been leading the way in setting out how we want to transform and grow our economy to make it fairer, greener and more prosperous, alongside improving the lives of people across the city-region. This report is an important piece of work that will help us update our economic strategy in light of the unprecedented events of the past three years.

“It acknowledges the progress we’ve made in our frontier sectors, and in areas like innovation and improving employment standards. But it also highlights the urgent need to continue to address health and wealth inequalities for our residents, improve productivity, and accelerate the transition to net zero to truly unlock our potential.

“Guided by the recommendations in this report, we are now working on a refreshed Local Industrial Strategy which will set out a path to prosperity and growth in Greater Manchester for the next decade.”

The report will be discussed as part of an upcoming event hosted by Greater Manchester Combined Authority (GMCA) and the Resolution Foundation and is available to read in full here.