From tech to transport – the North West is set for a big year in 2025, its leaders have told BusinessLive.
2024 was a mixed year for the British economy, with consumers still contending with high prices and businesses still digesting the impact of Rachel Reeves’ Budget proposals including changes to national insurance.
The latest Lloyds Business Barometer showed more 海角视频 firms were optimistic about a stronger start to 2025 than they were at the beginning of 2024, with 70% of 海角视频 businesses expecting their turnover to rise over the next year and nearly three-quarters confident of achieving higher profitability.
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But some sectors are under pressure, with analysts warning insolvencies and restructuring could rise further in the retail and leisure sectors over the start of 2025 as firms face increased cost pressures,
We asked business leaders locally for their hopes for the year ahead for the 海角视频 and for the North West – if you have predictions to share, why not join the conversation
‘So much opportunity’ for Greater Manchester exporters
Janine Smith, Director of GM Business Growth Hub, said: “Greater Manchester has shown just how well devolution can work – the growth here is outpacing anywhere else in the country for a reason. I'm very happy that the new government has recognised this and is allowing devolution to continue, and even encouraging it. We've seen the direct benefit this has had on businesses, and it's the right thing to continue it.
“The new integrated settlement means that even more can be done to directly support the businesses and people of our city-region. I'm also happy for other areas of the country that now have access to the same opportunities that GM have had. It's going to be an exciting couple of years to see what growth can be achieved across the nation.
“I look forward to seeing what GMCA and the Mayor do with these new powers, building on their incredibly strong foundation. I'm also looking forward to seeing the Bee Network continue across GM, investing in our infrastructure improves everyone's lives.”
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Janine says there is still huge potential for the city region’s businesses in overseas markets. She said: “Although Greater Manchester is growing at an incredible rate, we're punching below our weight for international opportunities especially in regard to international trade. The benefit there is, there is so much opportunity.
“We're a city-region of huge cultural importance and influence and I look forward to seeing more businesses export their amazing products and services all across the globe. The new enhanced partnership between the Growth Company, GMCA, Greater Manchester Chamber of Commerce and the Department for Business and Trade is looking to do just that.”
Manchester and the North West ‘must keep attracting 海角视频’s top talent’
Asked for his hopes for the year ahead, Richard Jeffrey, national director at the Growth Company, said: “I hope Greater Manchester and the wider North West continue to attract the best talent and businesses. Over the past three years, around 10,000 Londoners have made the move up the M1, and it’s no wonder because we’ve seen significant investment in the region during that time.
“I also hope that Greater Manchester remains an innovation hub, supporting start-ups, growth businesses, and scale-ups.
“Last, but not least, I hope that we continue to build on our strong connections with other regions in the North of England. Although the government has, to an extent, stepped back from various pan-regional initiatives, collaboration across the North remains strong. Greater Manchester has been a key player in these efforts, and I believe it can continue to lead, share, and learn to the benefit of everyone.”
Richard said he also wanted to see the region continue its push towards net zero.
He said: “It’s not just the right thing to do for the environment, but it presents significant business opportunities. However, we need to do more to help companies integrate into the emerging green economy and take full advantage of these opportunities.
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“I also hope that regions across the country expand their support for start-ups, growth businesses, and scale-ups. No one can deny that times are tough for many businesses, but major projects such as the Sizewell C nuclear power station in Suffolk and other major infrastructure projects demonstrate the enduring potential for growth and development in the 海角视频 – so long as decision-makers embrace the benefits of long-term investment.
“Lastly, I hope that cities and regions come to a more strategic understanding of their unique strengths and use readily available tools – like Growth Flag – to identify areas and sectors that harbour the greatest promise of growth.”
City’s nightlife will need its ‘undeniable spirit’ to get through uncertain times
Sacha Lord, Night Time Economy Adviser for Greater Manchester, said: "Looking ahead to 2025, the Greater Manchester hospitality scene faces a mixed bag. It's disheartening to see the RMT train strikes kicking off the year, creating immediate hurdles for businesses relying on tourism and of course, safe transport for staff. Add to that the blows from the autumn budget - increased National Insurance contributions and reduced business rate relief - and it's clear that venues are facing a double whammy.
“However, this region has an undeniable spirit. This city thrives on innovation and resilience. We're one of the strongest areas in the 海角视频 for business, we're growing at a rapid rate and the investment across the ten boroughs, including Wigan, will only continue to grow - that gives me confidence. Despite the challenges, I believe our hospitality sector will adapt and continue to deliver. We're on a world stage as the 'place to be' in the 海角视频 and I've no doubt this will continue as we move through 2025."
Property market ‘to gather pace and strength in 2025’
Joe Rigby, managing director for the North at global property giant CBRE, said: “Looking through a commercial real estate lens, the market is reaching a turning point, which we expect to gather pace and strength in 2025.
“We believe the 海角视频 market will benefit from lower interest rates, increased investment and planning reforms. As we leave a year where investment volumes remained at historically low levels, a rise in values, alongside lower interest rates and lower costs of debt, will stimulate an uplift in investment in 2025.
“We are seeing growth in life sciences, tech and finance sectors which will continue to drive demand. Sustainability initiatives and advances in AI will shape developments moving forwards. The housing market will gain momentum with new towns and revised planning policies. Commercial real estate will see rising values and investment, particularly in prime office and logistics sectors. Driven by AI demands, the data centre market in the 海角视频 is set to continue its impressive growth trajectory next year with development expected to accelerate into select smaller 海角视频 markets, for example, Kao Data started construction of a 40MW data centre in Manchester in October.
“Retail parks will lead investment, while affordable housing and build-to-rent sectors will face supply challenges, but remain attractive to investors. As we move forward, we are seeing a lot of positives.”
Mr Rigby said there were still some key areas of concern including the impact of Rachel Reeves’ Budget changes to national Insurance, and the potential for more inflationary shocks.
He added: “Planning reforms and supply shortages will undoubtedly cause challenges for the housing market. Investment could also be impacted by rising costs for businesses, as well as higher interest rates. The rental market may see affordability issues and new energy efficiency regulations could strain landlords. Additionally, the sustainability agenda and climate risks require significant attention.
“We must navigate older asset repositioning costs and the data centre market faces capacity constraints, as well as power availability issues.”
North West will help to drive 海角视频 life sciences innovation
Professor Chris Molloy, CEO at the Medicines Discovery Catapult at Alderley Park, said: “The Government’s Autumn Budget included support for 海角视频 life science innovation, with the announcement of £520m for a new Life Sciences Innovative Manufacturing Fund and a commitment to maintaining funding for research and development in the 海角视频’s science base.
“To make this goal a reality in 2025, it’s essential that we create a pipeline of innovative life sciences start-ups, scale-ups and SMEs that are fit to fund. This means providing wraparound support alongside access to capital and technology to ensure burgeoning businesses have access to the skills, resources and facilities that enable them to attract investment and grow.
“As a National Life Sciences Service, we look forward to supporting the sector to create the strong pipeline of businesses the 海角视频 needs, drugs that patients need and people that investors can back. This is essential to unlock the potential of private funding and will ensure the 海角视频 continues to stand as a beacon of innovation and the place where new medicines are born. It will also help our nation’s entrepreneurial scientists to turn inventive science into new drugs and technologies that can diagnose and treat cancer, AMR, dementia, and psychiatric diseases transforming outcomes for patients, their families and our economy.”
Prof Molloy said the North West was helping to drive life sciences innovation in the 海角视频 and beyond.
He added: “Greater Manchester is home to much of this crucial innovation, housing great universities, a devolved healthcare region, pioneers of real world evidence-based trials, expert facilities such as 海角视频 Biobank and a talent pool of long-standing industry and academic wisdom. It is an international destination for life science, materials and digital entrepreneurs, with growing investment in a city region that has already created so much potential.
“We will ensure that Manchester and the North West maximise the value of its inventions by rigorous industry-class research and development. This will attract the best people and growth investment to ensure the power this region truly delivers for patients and the whole economy.”
Data centres: Manchester could become a key 海角视频 hub
In October 2024, work began on Kao Data’s massive £350m data centre in Reddish, Stockport, which local leaders hope will boost the area's tech and AI industries.
Adam Nethersole, VP at Kao Data, said: “2025 will see an increased demand for data storage and processing, driven by the rapid growth in AI, cloud services and data analytics. With the Greater Manchester Mayor’s ambitions to make Manchester the 海角视频’s leading digital city region, it is well placed to capitalise on the growing demand for data centres and the compute power required to grow these technological capabilities.
“As such, we predict that we will see other data centre operators and cloud providers follow the lead of Kao Data, and expand into the North West, and Greater Manchester specifically.
“Additionally, due to , Manchester, at just 166 miles away, and sharing the same world-class connectivity links as Ireland, is well-placed to support Dublin and its hyperscale community. We predict that Manchester and Dublin will begin to form a close bond when it comes to digital infrastructure, providing a much-needed Northern gateway to Europe.
“On top of this, we also predict that creating better links with the community will become a bigger priority for large tech businesses moving into new areas, such as our recently-launched Kao SEED Fund for Stockport.”
Also this year, Stockport brothers Allan and Phil Kaye opened a “try before you buy” lab for businesses looking to test AI.
Phil Kaye, co-founder of Vespertec, said he had big hopes for Manchester’s tech scene in 2025.
He said: “The main theme of this year for me was the explosion in Greater Manchester’s data centre scene. I’ve spent about 20 years in the industry, and over that time Manchester’s slowly but surely built a launchpad for what could be one of the most advanced data centre hubs in the 海角视频. 2024 was the year the rocket took off. We’ve seen impressive growth, with major projects like Kao’s data centre breaking ground in October and promising to create both direct and indirect jobs in engineering, construction, and operations.
"Another exciting development is the government’s plan to pilot a heat reuse scheme in Stockport, which could slash people’s energy bills by using waste heat from data centres to heat local homes and public buildings. As if all that wasn’t enough, just last month DLD announced plans for a £250m data centre in Salford.
“All this means I’ve got high hopes for 2025. Local and national authorities have shown a great deal of support in these last 12 months, and that’s only going to increase over the next year. We’ll see these projects progress, and I suspect more will be announced very soon. It’s not just about quantity either. With leading experts in AI chip efficiency, sustainability, and novel data centre design, I’m certain we’ll see local innovators getting the chance to show just how much Manchester has to offer."
Good year ahead for local science and tech
Andrew Cooke, operations and strategic director at Bruntwood SciTech, said: “It’s been a positive year for Manchester’s tech and life science ecosystem with 107 new science and tech businesses taking on new space at innovation hubs across Manchester and Cheshire, while a further 35 firms chose to expand their presence here. In particular it was great to welcome the likes of global cybersecurity business SafetyCulture to Bond and e-commerce giant AO.com to 111 Piccadilly, highlighting the strength of the region’s specialist workspace offering.
“Meanwhile it was also a privilege to host the Secretary of State for Science, Innovation and Technology at Manchester Science Park as we broke ground at the future site for 海角视频 Biobank, Greenheys.
“Greater Manchester is currently one of the 海角视频’s fastest growing regions, with its science, tech and innovation ecosystem playing a key role in driving this. At Bruntwood SciTech we’re excited to be at the forefront of this, having committed £243m of investment in developments across Manchester city centre in this past year alone, and having seen major updates at two of our innovation campuses with both Citylabs 4.0 and No.3 Circle Square topping out this year and set to complete in early 2025.
“Looking ahead to 2025, we expect that the region’s growth will continue at pace, as more innovative businesses across sectors including fintech, life sciences and digital tech choose to base themselves here. And to ensure this we will continue to invest into our innovation hubs, ensuring that Manchester remains an attractive place for firms to base themselves.”
Investor expects strong year but warns on geopolitical uncertainty
Claire Alvarez, Manchester-based partner at investor Foresight Group, said: "We are optimistic that the North West SME market will perform well following what has been a challenging environment.
"With interest rates easing there appears to be a greater degree of political stability with the first budget of the new government out of the way. Sentiment among dealmakers is improving and we therefore expect an uplift in activity in 2025.
“At Foresight, we have invested into growing companies for four decades and have supported companies through multiple economic cycles. 2024 was a year of shifting political landscapes across the globe, and we anticipate that greater certainty will drive increased M&A activity in 2025. The ongoing geopolitical conflicts in Europe and the Middle East are likely to cause concern for many businesses. With the recent changes in inheritance tax relief we anticipate a trend of more family businesses coming to market.
She added: “ All in all we are looking forward to another strong year of activity in the North West.
“We invest in growing companies across all sectors and transaction types and continue to see a high volume of exciting companies. Sectors we are seeing frequently are business services, software, tech and healthcare. The emergence of AI is likely to continue to create investment opportunities as well as ways for companies to become more efficient. “
Global issues could also have an impact
Steven Mason, an insolvency practitioner and senior manager at Inquesta, said: “Productivity and the much-vaunted promise to deliver growth will be key issues. The 海角视频 is suffering from significant gaps in the labour market, with worker shortages in many traditionally lower-paid jobs in sectors such as hospitality and healthcare.
“This could well have been impacted by Brexit, with many European workers returning home and not coming back to Britain at the end of the pandemic. It will be interesting to see the results of the 海角视频’s forthcoming talks with the EU, which may well lessen regulations and the barriers which could be preventing younger workers from moving to the 海角视频.
“Additionally, the government will hope that renewed trade talks with the EU will result in less regulatory disruption and border checks, which continue to hinder 海角视频 companies.
“This will not be an easy task – balancing the demands of those who do not wish to ‘water down Brexit’ and those of the EU may not lend itself to a positive outcome.
“A major stumbling block remains the EU’s demands for conformity with its rules and an insistence on the European Court of Justice being the ultimate arbiter in any disputes.”
Mr Mason said it was “impossible to predict” the impact of the second Trump presidency on the 海角视频. He said: “While talk of tariffs against imports of non-US goods has made the headlines, the 海角视频 will hope to leverage whatever remains of the ‘special relationship’ to ensure our exports are not unduly affected.
“Furthermore, the 海角视频 will also be looking, with the rest of the world, how the Trump administration deals with Ukraine, Russia and the Middle East, with these issues having the potential to cause further instability in the energy and oil markets as well as affecting supply chains reliant on the shipping of goods.”
Optimism over ‘transformation and change’ in government
Property specialist Sarah Butler, divisional director and local government lead at Drees & Sommer 海角视频 in Manchester, said she was optimistic about the “transformation and change” she expects to see in government in 2025.
Sarah said she expected a focus on digital transformation, including smart city technologies, and is expecting a renewed focus on sustainable development and said: “With rising regulatory pressures and public demand for green initiatives, we expect more government projects to prioritise sustainability. This means not just focusing on environmental aspects but also ensuring social and economic benefits for communities.
"Our collaboration with Manchester City Council and EQUANS on the Council’s Decarbonisation Programme is a prime example of this approach. Together, we are working towards Manchester's ambitious goal of becoming net zero by 2038. This partnership involves targeted decarbonisation activities across the council’s property portfolio, ensuring that our efforts contribute to both environmental sustainability and the social welfare of the local community.”
She added: “The economic landscape in the North West and other regions is showing promising signs of recovery and growth. Despite challenges like inflation and political uncertainty, the momentum built in 2024 provides a strong foundation for the coming year. Continued investment in infrastructure and housing will be vital for economic stability and growth.
“I think 2025 holds great promise for the government sector. By focusing on sustainability, digital transformation, and public-private collaboration, we can navigate the challenges ahead and seize opportunities to build a more resilient and prosperous future.”
Haulage tech firm looks to AI
Scott Robertson is co-founder at HaulageHub, a 海角视频-based digital freight marketplace, based at Sci-Tech Daresbury.
He said: “In 2025 the transport industry is poised for even further transformation. AI and machine learning are facilitating even more innovations such as autonomous trucks, advanced telematics, and the integration of electric and hydrogen-powered vehicles.
“The supply chain sector will need to embrace these developments with open arms to ensure companies are at the forefront of a digital, more efficient, and more sustainable future.
“The business case for sustainable logistics is clear and the sector will only benefit from implementing AI in their processes to achieve this in 2025.”
Housing: Policy needs ‘radical change’ if 海角视频 is to hit targets
Sean Keyes, CEO at Liverpool-based civil and structural engineering consultancy Sutcliffe, said he was pleased that Sir Keir Starmer had set an ambitious target of building 1.5m homes in his first term. He said the construction sector was keen to support that bid to tackle the 海角视频’s housing shortage.
But he added: “I am sceptical that we will hit these figures as it will mean almost doubling the number of homes being built by 2029. We haven’t built this many homes since the 1970’s. This pledge promises to spearhead the creation of the next generation of towns and cities over the next four years, starting in 2025. House building must now become a top priority for the Government, who must simply deliver, as we have not built at this level in over 50 years.
“My prediction is that we will not build 1.5m homes in five years, but will get close to 300,000 in a single year. To achieve this, national planning policy needs to radically change as in my experience most complex planning applications can take 12 months and not the ideal 16 weeks.
“Recently, the Deputy Prime Minister, Angela Rayner, outlined plans to accelerate the removal of unsafe cladding to the exterior of many homes by the end of 2029, something I expect to gain momentum in 2025. However, this is not going to be a quick fix as the costs involved are astronomical and fundamentally, the Government finances are tight and there is a skill shortage when it comes to this type of work.
“However, the outlook for businesses in 2025 is optimistic even if there are tax rises coming; businesses will adjust and make it work. If we build the homes predicted, then the construction sector will be busy. The recent hike in national insurance is poised to place an extra tax burden solely on businesses, exacerbating an already demanding tax landscape. The harsh reality of this will be that it will lead to inflation. The idea that prosperity for all can be achieved through taxation is flawed. This rising tax pressure will slow down innovation and ultimately hinder economic success. As we approach 2025, addressing this issue will be essential to safeguard the country’s business landscape.”
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