Greater Manchester leads UK in productivity improvements

Greater Manchester has seen the biggest increase in productivity of any UK region over the past 20 years, according to analysis by the Northern Powerhouse Partnership.

The analysis found that between 2004 and 2023 the city-region saw the highest rise in gross value added (GVA, a measure of economic output) per hour worked. The 31% increase in productivity follows a period of sustained investment in public transport and infrastructure, alongside the long-term devolution of powers to Greater Manchester’s metro mayor, and has begun to close the productivity gap with London.

By contrast, in the same period, neighbouring Cheshire, Lancashire, and Merseyside saw less than 10% improvements in productivity.

On the other side of the Pennines, Rotherham was revealed as one of the fastest-growing subregional economics for productivity, with a 63.9% increase, driven by growth of the Advanced Manufacturing Innovation District shared with neighbouring Sheffield. South-East Greater Manchester, which includes Stockport, saw a 35% increase in productivity over the 20 year period analysed in the study.

Andrew McPhillips, Chief Economist for the Northern Powerhouse Partnership, said:

“This is a milestone moment for the North. Greater Manchester leading the UK on productivity growth shows what’s possible with long-term leadership with ambition, major investment in public transport and more powers through devolution. More of the great Northern cities are taking their destiny in their own hands as Greater Manchester did and we can expect similar success, particularly if their respective economies become better connected through projects initially like TransPennine Route Upgrade and start to be able to reinforce each other’s growth.

“Rotherham’s success at the heart of South Yorkshire shows how industrial innovation, skills and regeneration can transform a local economy. The Advanced Manufacturing Park has put Rotherham on the global map, this is the kind of model we need to replicate right across the North from Atom Valley to Goole in the Humber Freeport.”

Mayor of Greater Manchester, Andy Burnham, said:

“Greater Manchester has been the UK’s economic success story over the past two decades. We are showing what can be achieved when ambition is matched by devolution and investment, forging a path for other English cities and regions to follow.

“We are beginning to close the productivity gap with London and the South East, but the job is far from over, and we are already hitting constraints. We need the Government to give us the right powers and funding, particularly on transport and skills, so that we can remove those constraints and accelerate our city-region’s growth in the decades to come, creating opportunities and prosperity for our people while powering the growth of the UK economy.”