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A new study suggests the North-South divide is closing after Greater Manchester showed the biggest productivity growth of any region in the º£½ÇÊÓƵ.

Analysis from the Northern Powerhouse Partnership highlights how Greater Manchester has seen the biggest increase in gross value added (GVA) per hour worked between 2004 and 2023. The 31% increase in productivity follows sustained investment in public transport and infrastructure, as well as the devolution of powers to Greater Manchester’s metro mayor.

At a more local level, the Yorkshire town of Rotherham was highlighted as one of the fastest-growing sub-regional economies with a 63.9% increase in productivity over the same period. That improvement follows the growth of the Advanced Manufacturing Innovation District shared with neighbouring Sheffield in South Yorkshire

Andrew McPhillips, chief economist for the Northern Powerhouse Partnership, said: “This is a milestone moment for the North. Greater Manchester leading the º£½ÇÊÓƵ on productivity growth shows what’s possible with long-term leadership with ambition, major investment in public transport and more powers through devolution.

“More of the great Northern cities are taking their destiny in their own hands as Greater Manchester did and we can expect similar success, particularly if their respective economies become better connected through projects initially like TransPennine Route Upgrade and start to be able to reinforce each other’s growth.

“Rotherham’s success at the heart of South Yorkshire shows how industrial innovation, skills and regeneration can transform a local economy. The Advanced Manufacturing Park has put Rotherham on the global map, this is the kind of model we need to replicate right across the North from Atom Valley to Goole in the Humber Freeport.”

Greater Manchester mayor Andy Burnham said: “Greater Manchester has been the º£½ÇÊÓƵ’s economic success story over the past two decades. We are showing what can be achieved when ambition is matched by devolution and investment, forging a path for other English cities and regions to follow.

“We are beginning to close the productivity gap with London and the South East, but the job is far from over, and we are already hitting constraints. We need the Government to give us the right powers and funding, particularly on transport and skills, so that we can remove those constraints and accelerate our city-region’s growth in the decades to come, creating opportunities and prosperity for our people while powering the growth of the º£½ÇÊÓƵ economy.”

South Yorkshire mayor Oliver Coppard said: “South Yorkshire is at the forefront of a national industrial revival—and Rotherham is leading the charge. In Rotherham we’re seeing industrial strategy done right, delivering exactly what the country needs: higher productivity, stronger innovation and real economic transformation.

“The results speak for themselves. Rotherham’s emergence as a place where productivity is growing almost quicker than anywhere else in the whole of the º£½ÇÊÓƵ, is a testament to our advanced manufacturing sector and our success building the industries and jobs of the future.”