IMPLEMENTING CHANGE:

A NEW LOCAL AGENDA FOR

JOBS AND GROWTH In co-operation with the EU Presidency, Irish Government and Pobal

26-27 March 2013, Dublin-Kilkenny, Ireland

9th Annual Meeting

WORKSHOP D: ENABLING GROWTH AND INVESTMENT:

STRATEGY,SYSTEM AND LEADERSHIP

Baron Frankal Director of Economic Strategy, New Economy, Association of Greater Manchester Authorities,

United Kingdom

Delivering Local Development in Manchester

Baron Frankal, Director of Economic Strategy

“Outside London, MCR is the city region which, given its

scale and potential for improving productivity, is best

placed to take advantage of the benefits of agglomeration

and increase its growth” – MIER

How great is Manchester?

• Accounted for 60% of all population growth across the North West in the last 10 years – reversing decades of population shift in the opposite direction

• Has largest travel-to-work area of any conurbation in the UK outside London, and 7 million people live within one hour’s drive

• Generates £46 billion of Gross Value Added on an annual basis, accounting for around 40% of GVA in the North West

• This is the equivalent of:

• West Yorkshire

• Wales

• Croatia

Challenges

Worklessness Skills

Deprivation Business Start-Ups

Governance looks good

• AGMA

• GM Combined Authority

• Local Enterprise Partnership

• Police and Crime Commissioner

• Manchester Family • New Economy

• Marketing Manchester

• Business Growth Group – MIDAS, Business Growth Hub & UKTI

• Greater Manchester Chamber of Commerce

• Collaborative governance

Governance and the economy working

together

• MIER

• Strategic sites review

• Enterprise Zone: Airport City

• Greater Manchester Strategy

• Investment Funds

• Strategic Assessment Framework

GMS & IGMA

Key Sectors

• 163,000 jobs, GVA of £4.7bn p.a.

• Manchester Science Park, Christie Hospital, UK Biobank Health & Life Sciences

• 224,000 jobs, GVA of £9.0bn p.a.

• Deloitte, KPMG, PwC, etc. Financial & Professional

Services

• 63,000 jobs, GVA of £2.7bn p.a.

• MediaCityUK, Sharp Project Creative & Digital

• 105,000 jobs, GVA of £3.0bn p.a.

• 5 universities, Graphene hub, 100,000+ students Education

• 21,000 jobs, GVA of £0.5bn p.a.

• Man City, Man Utd, Adidas, Umbro Sport

• 38,000 jobs, GVA of £1.9bn p.a.

• NXP, Siemens, Holroyd Precision Advanced Manufacturing

Key Markets

• Boosting trade and creating new links

• The Wei Report – June 2012

• Manchester-China Forum China/Asia

• Collaboration with Abu Dhabi

• Economic evidence base produced

• Key sectors identified

Middle East

Investment Tools

• City Deal • Earnback model

• Investment framework

• Growth hub

• Skills and the local economy

• Low carbon demonstrator

• Inward investment beacon

• Evergreen

• Regional Growth Fund

Funding

Regional Growth

Fund

Growing Places

Fund

Urban Broadband

Fund, GM Transport

Fund, ERDF,

Evergreen, GIB JV…

Appraisal

STRATEGIC ASSESSMENT FRAMEWORK

To find consensus on projects that: •Provide good GVA (net economic impact) •Demonstrate value for money •Maximise private sector leverage •Deliverability

“Revenue” streams:

EZ, pooled business

rates, new homes

bonus, earnback…

Allocation and

Investment Pipeline

• Projects

• Projects

The Investment Framework

Net employment/GVA created (and VfM)

Transport investment Growth and

redistribution of

employment

Total Greater Manchester

employment impact

Connectivity

change

Feedback effect as

growth leads to

additional

congestion

Transport

One new workplace

aspiration

Controlled for what proportion is

likely to be delivered and then

ultimately occupied

Connectivity changes

Increased number of jobs

created from access to larger

business to business markets

Total Greater Manchester

employment impact

Displacement

Share of businesses

competed from other

conurbations.

Depends on sector

Feedback effect

as growth leads to

additional

congestion

Regeneration

One new house aspiration = 2.3 people

= 1.5 people of working age

Controlled for what proportion is likely

to be delivered and then ultimately

occupied

Displacement New GM residents vs

redistributed around GM

Local service jobs

induced local jobs

Supply side

changes

jobs from larger

labour markets (and

small amount from

changes in shape of

business to

business markets)

Total Greater

Manchester

employment impact

Feedback effect

as growth leads

to additional

congestion

Housing

Net employment/GVA created (and VfM) - model outputs (2)

What is needed from the public sector?

• Autonomous decision-making

• Infrastructure (transport & digital) investment, for example • £560m Northern rail hub

• £25m Growing Place fund

• £12m Urban Broadband Fund

• Investment in skills – to reduce the productivity gap

• Working within practical economic geographies

Community Budget

Early Years Transforming

Justice Troubled Families

Reducing demand today

Reducing demand for

generations

Reducing demand today and

tomorrow

Turning off the

dependency tap at

source

X

Better outcomes, lower cost

Health & Social Care

Better outcomes, lower cost

SAVINGS

Re-investment of resources across partners

SKILLS & WORKLESSNESS

AGEING POPULATION

And from the private sector?

• Working in partnership with the public sector

• Supporting the internationalisation process – e.g. knowledge of growth markets like China, India, Brazil, Middle East etc.

• Supporting growth in key target sectors – both national and internationally – i.e. helping domestic trade and export-led growth.

Any Questions…

baron.frankal@neweconomymanchester.com