Mayor of Greater Manchester Andy Burnham is urging the Government to back plans for a new Northern Arc to rebalance infrastructure investment and boost the national economy.
On Tuesday, he will meet with Treasury ministers to present the Northern Arc vision, based on new analysis by economists at Metro Dynamics.
Greater Manchester has experienced the fastest growth in the UK, with an average annual growth of 3.1% since 2015 and the highest productivity growth in the country. This success has come despite historic underinvestment in transport infrastructure in the North of England, which is losing £16 billion a year in productivity due to poor transport links.
Greater Manchester’s economic success has been driven by its pioneering devolution deal and a unique place-first partnership approach that brings together the public, private, community, and voluntary sectors, harnessing the strengths of the city-region's universities and dynamic innovation ecosystem. However, continued growth cannot be guaranteed as poor transport links are hindering economic development across the North.
The Greater Manchester Mayor commented:
“The Northern Arc is the most exciting growth opportunity on offer – and one that can give a massive boost to the national economy.
“Greater Manchester has been the UK’s economic success story over the past decade, as part of a resurgent North pioneering English devolution. But the outdated infrastructure linking our great cities risks limiting our potential and widening the productivity gap with London and the South East.
“The Government has given its backing to the Oxford-Cambridge Arc to boost economic output in the South. We can say with confidence that the Northern Arc is our answer to reaping the rewards of growth here – and offers an even bigger prize for UK plc.”
The productivity gap between London and the North West stands at 27% and could widen without the right infrastructure to connect growth centres. New analysis suggests that if the untapped potential of the North West is unleashed through new infrastructure investment, the region could boost economic output by £90 billion by 2040, complementing the up to £78 billion generated by the Oxford-Cambridge Arc by 2035.
The Northern Arc is a series of economic areas stretching from the North West to the Pennines and connecting into West and South Yorkshire, underpinned by transport links including a new railway from Liverpool to Manchester. The North West section alone, encompassing the Liverpool City Region, Cheshire and Warrington, and Greater Manchester, covers an area home to 5.4 million people, two Investment Zones, and an annual economic output of £150 billion.
The Northern Arc offers an unparalleled opportunity to compete globally, with international gateways through the Port of Liverpool and Manchester Airport, and a world-leading innovation and industrial ecosystem. Rather than competing with areas in the South, the Northern Arc will build on the strong track record of collaboration between partners across the North West and other areas, including the Manchester-Cambridge innovation partnership.
Greater Manchester has a plan to secure £1 billion of investment every year over the next decade through a single integrated pipeline for growth, targeting six Growth Locations with the highest potential to boost the regional economy and benefit all 10 boroughs.
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