Presentation by Baron Frankal, Director of Economic Strategy, New Economy, Association of Greater Manchester Authorities, United Kingdom. 9th Annual Meeting of the OECD LEED Forum on Partnerships and Local Governance (Dublin-Kilkenny, Ireland), 26/27 March 2013. http://www.oecd.org/cfe/leed/9thfplgmeeting.htm

1. 9th Annual Meeting
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
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

2. Delivering Local Development in Manchester
Baron Frankal, Director of Economic Strategy

3. “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

4. 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

5. Challenges
Worklessness Skills
Business
Deprivation
Start-Ups

6. 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

7. Governance and the economy working
together
• MIER
• Strategic sites review
• Enterprise Zone: Airport City
• Greater Manchester Strategy
• Investment Funds
• Strategic Assessment Framework

8. GMS & IGMA

9. Key Sectors
• 163,000 jobs, GVA of £4.7bn p.a.
Health & Life Sciences
• Manchester Science Park, Christie Hospital, UK Biobank
Financial & Professional • 224,000 jobs, GVA of £9.0bn p.a.
Services • Deloitte, KPMG, PwC, etc.
• 63,000 jobs, GVA of £2.7bn p.a.
Creative & Digital
• MediaCityUK, Sharp Project
• 105,000 jobs, GVA of £3.0bn p.a.
Education
• 5 universities, Graphene hub, 100,000+ students
• 21,000 jobs, GVA of £0.5bn p.a.
Sport
• Man City, Man Utd, Adidas, Umbro
• 38,000 jobs, GVA of £1.9bn p.a.
Advanced Manufacturing
• NXP, Siemens, Holroyd Precision

10. Key Markets
• Boosting trade and creating new links
China/Asia • The Wei Report – June 2012
• Manchester-China Forum
• Collaboration with Abu Dhabi
Middle • Economic evidence base produced
East • Key sectors identified

11. 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

12. Funding Appraisal Allocation and
Investment Pipeline
STRATEGIC
Regional Growth ASSESSMENT
Fund FRAMEWORK
To find consensus on • Projects
projects that:
Growing Places
Fund •Provide good GVA
(net economic
impact)
•Demonstrate value
Urban Broadband for money
Fund, GM Transport •Maximise private • Projects
Fund, ERDF, sector leverage
Evergreen, GIB JV… •Deliverability
“Revenue” streams:
EZ, pooled business The Investment
rates, new homes
bonus, earnback… Framework

13. Net employment/GVA created (and VfM)
Transport
Feedback effect as
Growth and
Connectivity growth leads to Total Greater Manchester
Transport investment redistribution of
change additional employment impact
employment
congestion
Regeneration
One new workplace Displacement Feedback effect
Connectivity changes
aspiration as growth leads to
Share of businesses Total Greater Manchester
competed from other
 Increased number of jobs additional
employment impact
Controlled for what proportion is
conurbations.
created from access to larger congestion
likely to be delivered and then
business to business markets
ultimately occupied Depends on sector
Housing
Displacement Supply side
One new house aspiration  New GM residents vs changes
= 2.3 people redistributed around GM  jobs from larger Feedback effect
= 1.5 people of working age labour markets (and as growth leads Total Greater
small amount from to additional Manchester
Controlled for what proportion is likely congestion employment impact
to be delivered and then ultimately changes in shape of
Local service jobs business to
occupied
 induced local jobs business markets)

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

15. 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

16. Community Budget
SKILLS & WORKLESSNESS AGEING POPULATION
Reducing demand for Reducing demand today Reducing demand today and
generations tomorrow
Transforming Health & Social
Early Years Troubled Families
Justice Care
Better outcomes, lower cost Better outcomes, lower cost
X
Turning off the SAVINGS
dependency tap at
source Re-investment of resources across partners

17. 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.

18. Any Questions…
baron.frankal@neweconomymanchester.com