Manchester’s rate of economic growth over the last five years suggests the city needs assistance in key areas to fully complete its recovery from the recession, reveals research by UHY Hacker Young, the Manchester based accountancy firm.
According to UHY Hacker Young, the city recorded growth in its ‘Gross Value Added’ (GVA) of 7.5% in the five years since the recession, from 2009 to 2013, just below the national average of 9%.
‘Gross Value Added’ (GVA) is the measure of an area’s contribution to the UK economy according to the value of the goods and services it produces.
Manchester has recorded a GVA contribution per person of £20,160, just below than the UK average of £20,900.
UHY Hacker Young notes that Manchester’s economy is growing at a much faster rate than many of its local competitors, including Liverpool, where the GVA actually fell by 2.6% in five years, and Leeds which saw an increase of 5.6% over the same period.
UHY Hacker Young says that Manchester’s position as one of the UK’s most important economic centres helps to attract businesses to the city – as well as a growing prominence as a media hub, with the BBC recently relocating to MediaCityUK near Salford Quays.
Manchester also benefits from its international airport, allowing easy access to Europe and further afield – a significant attraction for businesses. The airport is set to undergo a £1bn renovation which it is hoped will further fuel the region’s growth.
UHY Hacker Young notes that the introduction of HS2 will improve Manchester’s connectivity with the rest of the UK, opening up the region to further investment and emphasising the importance of the project going ahead.
Manchester’s economy is also boosted by strong financial and professional services sectors, ably supported by the high calibre graduates from the city’s world-famous universities.
Manchester is also one of the most significant financial services hubs outside London with a long history of specialising in insurance and banking. Major financial services employers in Manchester include Swinton Insurance, Co-Operative Group and the Royal Bank of Scotland.
Mike Wasinski, Managing Partner at UHY Hacker Young comments: “The strength of Manchester’s media industry is a boon to the region but Manchester needs to attract more businesses from a range of sectors to take the final steps in its economic recovery.”
“The scale of Manchester’s financial and professional services provides a large number of workers with well-paid employment, but the region cannot afford to rest on its laurels – a concerted effort to create more jobs to capitalise on the highly skilled workforce would provide a boost to the area.”
“The Chancellor’s latest Budget speech announced plans to build the Northern Powerhouse, an initiative that would receive strong support from Manchester’s business community. Manchester has got a great deal going for it so a concerted effort by the local council, local businesses and our universities should help to deliver more rewarding and well-paid jobs.”
