The economy of Greater Manchester has grown faster than London’s in the three years since the Northern Powerhouse initiative was launched, according to new research.
In a recent UK Powerhouse report, which is produced using the Centre for Economics and Business Research, it has been revealed that the economy of Greater Manchester has grown by 7.5% since the end of June 2014.
The report provides a quarterly estimate of Gross Value Added and job creation within 45 UK cities, 12 months ahead of the Government’s official figures.
Comparing Manchester to the Capital, the report unveils that Inner London’s GVA grew by 6.9% during the same period, whilst the economy of Cambridge, currently the fastest growing in the UK, expanded by 7.1%.
Manchester city itself has grown particularly well, with figures showing that the city’s financial state is reported to have grown by 9.1% since June 2014, which is the highest reported figure within the study during that period.
Since the Northern Powerhouse was established, by former Chancellor, George Osborne, job creation in Greater Manchester has not seen such significant growth as the overall figures show. Job creation in the area has grown by 4.3%, this figure is well below that of the Capital, with London’s boosted headcount creating 7.3% of growth.
Highlighting the fact that more needs to be done to re-balance UK economy, the report predicts that Manchester’s economy will grow by 14.8% in the next 10 years, compared to 16.1% for London and 22% in fast-growing Milton Keynes.
We previously reported how Northern Powerhouse has helped the north west of England grow in other ways, with the final route for HS2 being confirmed has “another step forward” in ensuring the North has both the rail connectivity and capacity it needs to help mobilise its wealth, according to an industry body.