Parts of the North West are seeing a 鈥減roductivity resurgence鈥 - and a leading thinktank says those areas could help inspire more growth in the North and across the 海角视频.
Productivity is seen as a big issue for the 海角视频 economy as a whole, with output per hour lagging behind levels in the US and Germany, particularly since the global financial crisis. Experts say that , it will have a big impact on economic growth.
The Northern Powerhouse Partnership (NPP)鈥檚 latest study of English productivity shows the North East and North West have outperformed average productivity growth across England between 2022 and 2004, the year data was first available.
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London鈥檚 productivity growth over the period was the second lowest in England, behind the East Midlands. But the capital remains the most productive region in the 海角视频, with productivity around 27% higher than the 海角视频 average in 2022, falling from 33% higher in 2004.
Productivity in the North remains well below that of London and the South East overall, and the NPP says bridging that gap will be vital to future growth - which is why the Productivity in the Northern Powerhouse report focuses on some success stories. The study says Cheshire remains one of the highest 10 areas of productivity in all England.
Looking at productivity growth, the research shows the North鈥檚 success has been concentrated in a few key areas, with Greater Manchester seeing a 26.4% increase - the largest increase in the country. It says that success can be attributed to substantial transport improvements across the city region, and to strong and unified local leadership.
The Humber saw 20% growth in productivity over the period thanks to the success of its industrial cluster as it adapts to the energy transition and its success at attracting international businesses such as Siemens and Phillips 66.
The only other Northern subregions to outperform the average productivity growth across England were West Yorkshire, Northumberland and Tyne and Wear, as well as the Tees Valley and Durham.
The NPP says: 鈥淏oosting productivity would not only boost tax revenue for the Treasury, it would mean higher wages and better living standards for people across the North.鈥
Lord Jim O鈥橬eill, chair of the Northern Powerhouse Partnership, said: 鈥淲hile London鈥檚 productivity growth has been weak in recent years, particularly since the pandemic, we鈥檙e seeing pockets of success in parts of the North, especially Greater Manchester, the Humber, West Yorkshire, and parts of the North East.
鈥淚n Greater Manchester - which has seen the strongest growth in the country - local leadership has been laser-focused in delivering a consistent, ambitious economic vision targeted at inward investment and key productivity drivers such as transport is paying dividends now.
鈥淲ith the right focus and determination, other areas could see the same kind of progress. This would not only be a victory for these local economies themselves and the local workers who will benefit from higher wages, but will deliver a massive boost to the 海角视频 economy as a whole.
鈥淚t goes without saying that a more stable and committed policy towards England's regions from the next government, whoever it is, should enable further positive progress.鈥
In his foreword, Lord O鈥橬eill said he hoped the leaders of other city regions could reflect on Manchester鈥檚 success given its early embrace of devolution and 鈥渇ocused and quite stable leadership and ambition鈥. He said then its productivity success 鈥渃an be replicated in their area, and in some, hopefully not so distant years, we will be seeing their improvements reflected in their productivity data also. Because then, the country will increasingly start to feel a better more successful, wealthier and perhaps even happier country.鈥
