Regeneration in practice: lessons from Manchester
Author: John Holden, in the Guardian Local Government Network |
From the 19th century John Bright-led campaign for the repeal of the corn laws, to the building of the Manchester Ship Canal, and the more recent creation of the UK’s first modern tram system, the city has a pedigree in identifying what’s needed to stimulate growth, and getting it done – no matter how radical.
That radical spirit is still evident today nowhere more clearly than in the creation of the UK’s first combined authority. Though 10 local authorities coming together to create a new statutory body may sound like a dull council reorganisation, it is in fact a hugely ambitious project that puts good governance firmly side-by-side with economic and social development.
Outside London, it is the only local government unit in the UK that reflects the reality of economic geography. By looking at issues such as economic development, education and training, transport, housing and planning across the whole of the city of Manchester, better decisions can be made that exploit the strengths of the whole area.
Crucially, Manchester’s unique governance structures also put the private sector at the heart of local decision making through its local enterprise partnership.
One of the combined authority’s first achievements was the signing of the Manchester city deal with government. The centrepiece of this deal is the government’s agreement in principle to a hugely ambitious “earn back” model, where up to £1.2bn invested in infrastructure improvements by Greater Manchester authorities will be paid back to the combined authority as real economic growth is measured. Additional agreements on business support, inward investment and skills – alongside the £100 million investment fund that Greater Manchester has created – means that the city has more weapons in its armoury than most to kick-start local growth.
Delivering growth in the current national and international economic climate will not be easy. However, our analysis suggests that Manchester is better placed than at any point in the last century to emerge from recession in sound economic health.
The current recession has led to employment shifting from public to private sector services, which is much less severe than the wholesale shift from manufacturing to services experienced in previous downturns. The result is that, in the long-term, the scarring impact on economic competitiveness and labour market participation is likely to be lower than previously suffered.
That’s not to underestimate the impact on those who find themselves out of work or the challenge for Manchester in providing effective support in a climate of rising demand and falling resources; ever more radical solutions to these problems will need to be found, building on Manchester’s community budget pilot as the city looks to reform its public services to cope with rising demand and falling resources.
As ever, ensuring Manchester’s unique growth potential is identified and unlocked by tailored action will be a key factor in achieving a sustainable economic future for the city.
A new report by the thinktank Localis, Grow your own way, looks at local approaches to regeneration and includes a case study on Greater Manchester
John Holden is deputy director of economic strategy at New Economy Manchester, Manchester’s local enterprise partnership