The GM Good Growth Fund comes as Greater Manchester continues to outpace the country as a whole, beating every region in the UK – this is the reason why
Greater Manchester’s economy is growing faster than anywhere else in the UK – even London. Over the past decade, the city-region has become the fastest growing part of the UK economy, with annual growth more than double the rate of the country as a whole.
Now, less than a week before Rachel Reeves delivers the budget, Andy Burnham is unveiling his own new model of ‘good growth’. A first-of-its-kind £1bn fund will kickstart 30 projects, using more lucrative investments to help finance projects in left behind areas.
It’s the latest example of Greater Manchester having the confidence to back itself when others won’t. In a landmark speech on Thursday (November 20), Mr Burnham will talk about Greater Manchester’s ‘huge success story’ so far and what comes next.
“We have decided to shape investment in our places,” he is expected to say, “rather than leave it all to the market, with a public entrepreneurism channelling the spirit of the great Sir Howard Bernstein.”
This sums up the Greater Manchester approach which is now being adapted with the aim of spreading success beyond the city centre. Ask anyone why the city-region has been so successful, they often point to three things: consistency, collaboration and confidence.
Over decades, Manchester has built a reputation as a business-friendly city where leaders go out of their way to make things happen.
Whether that’s putting public money into projects to make them more investable, or finding a suitable location for a new employer.
Jessica Koravos, chief operating officer at Co-Op Live owner OVG International, tells a story about when she first met with Manchester council to discuss a new music arena in the city. Within five minutes of leaving she said, she was sent in a cab heading to the Etihad.
A few years later, the company opened the largest indoor arena in Europe next to the football stadium. Manchester moves quickly.
Mike Ingall, founder of Spinningfields developer Allied London, says the city has been so successful because it has created a ‘stable’ environment in which businesses are supported with leaders enabling and facilitating investment in every way they possibly can.
The new GM Good Growth Fund is the latest example of that. Backed by the Greater Manchester Pension Fund, it will aim to bring in more investment to areas outside the city centre, with the first £400m invested alone expected to ‘unlock’ £1.3bn of private capital.
Henri Murison from business group Northern Powerhouse Partnership says this approach is key to success. He said: “The Greater Manchester model has relied on unlocking private investment rather than the public sector simply pursuing its own objectives.
“The success of the investment model in Manchester is that the deals secured by the city council and the combined authority in recent years have unlocked significant investment in office space and in Build To Rent that wouldn’t have happened if the public sector hadn’t been a supportive partner.”
The new approach to regional investment has been made possible by Greater Manchester’s economic growth over the decade, which stands at an annual rate of 3.1 per cent. Nevertheless, the city-region remains below the UK average accounting for population size.
Much of the growth over the last 15 years has been driven by Manchester city centre and surrounding areas, mainly to the south. This growth has been fuelled by financial and legal services and, more recently, the digital, technology, innovation and life science sectors.
But how has Greater Manchester managed to attract these businesses in the first place? According to Victoria Braddock, who has worked at Marketing Manchester for over 20 years and is now the managing director, it’s all about consistency and collaboration.
She said: “For us it’s always about having consistency in the leadership and a collaborative approach in everything that we do. It’s about us working together for the common cause.
“Over the course of my career, that’s something that I’ve seen that doesn’t happen in other places.”
Manchester is also known for its political stability with only two changes in leadership at the council over the last four decades. Sir Howard, who stood down as Manchester council’s chief executive is credited for creating the conditions for the region’s success story.
However, according to Mr Ingall, who still serves as the chairman of Allied London, that spirit has carried on with others in charge.
He said: “It’s now in its DNA. Everyone thought it will stop because people retire but it hasn’t.
“They’ve found people who are able carry that momentum and build it again. That’s in the numbers.”
Speaking to the Manchester Evening News, Mr Burnham said: “I’ve never changed the Greater Manchester approach. All I’ve tried to do is concentrate it even further, accelerate it even more. Give it a higher profile. The momentum picks up all of the while.”
“Growth comes with people facing the same direction, pulling in the same direction. This place is special because it engenders that spirit amongst people.
He added: “We’re becoming more expert in growth than I think Whitehall will ever be.”
