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Northern Powerhouse factsheet Key figures on the regions in the June 2015

Introduction

The idea of a ‘Northern Powerhouse’ was first introduced in June 2014 by the Chancellor of the , , in a speech in . He made the case that the lack of economic and physical connections between the and city regions of the North of was holding back their growth, with significant implications for the national economy. In the Chancellor’s own words: “the whole is less than the sum of its parts…so the powerhouse of dominates more and more.”

For Osborne, the solution to this challenge is the creation of a Northern Powerhouse – “not one city, but a collection of northern cities - sufficiently close to each other that combined they can take on the world.”

Since the Chancellor’s initial speech, a raft of interventions have been announced to help turn the rhetoric of a Northern Powerhouse into reality – including the Devolution Deal, , and the Northern Transport Strategy.

With the creation of a Northern Powerhouse set to be a key priority for the new Government, this briefing sets out the current economic profile of the key city regions across the North and compares their performance with that of London and of the UK as a whole. Reflecting the policy pledges contained within the Conservative manifesto, for the purposes of this analysis the Northern Powerhouse is made of the city regions of , Manchester, , , Hull and the North East.1 Figure 1: Northern Powerhouse key facts UK population (%) 16.7 Share of GB jobs, 2013 (%) 16.0 Share of total UK GVA, 2013 (%) 13.3 Share of jobs that are knowledge-intensive, 2013 (%) 12.7 Number of universities 23

1 Liverpool ; Greater Manchester Combined Authority; West Combined Authority; Sheffield Combined Authority; Local 1 Enterprise Partnership; North East Combined Authority Northern Powerhouse Factsheet • June 2015 Centre for Cities

Population

The Northern Powerhouse is home to 10.7 million people, a quarter of which live in the , and 21 per cent in Combined Authority.

Figure 2: Population share in city-regions in the Northern Powerhouse, 2013

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16 Sheffield Combined Authority 14 North East Combined Authority 12 10 Manchester City Region 8 6 4 West Yorkshire Combined Authority 2 Share of UK population, 2013 (%) 2013 population, UK Share of Hull City Region 0 Northern London Powerhouse

Source: NOMIS, 2015. ONS mid-year population estimates, 2013 data.

Over the last 10 years the Northern Powerhouse has had far slower population growth than the rest of the UK. Between 2004 and 2013, London grew more than twice as fast as the Northern Powerhouse. Figure 3: Population growth, 2004-2013

14 12 10 8 6 4 2 0 Population growth, 2004-2013 (%) 2004-2013 growth, Population UK London Hull City Region Liverpool City Region Northern Powerhouse Manchester City Region Manchester Sheffield Combined Authority North East Combined Authority West Yorkshire Combined Authority Yorkshire West

Source: NOMIS, 2015. ONS mid-year population estimates, 2004 and 2013 data.

2 Northern Powerhouse Factsheet • June 2015 Centre for Cities

Commuting

The Northern Powerhouse has a high level of containment: 92 per cent of people who work in the Northern Powerhouse also live within the Northern Powerhouse, and 96 per cent of those working in the North East Combined Authority also live there. 15 per cent of people working in Manchester City Region, however, travel in from elsewhere in the Northern Powerhouse or from beyond.

Figure 4: Commuting across the Northern Powerhouse

! City centre Commuting pattern

North East Combined City Region Authority boundary

!

0.4%

0.1% Hull City Region West Yorkshire Combined Authority ! 3% ! 1% 1% 1% 2% 2% Liverpool City Region 4% ! 3% ! !

Manchester City Region Sheffield Combined Authority

Source: NOMIS (2015), Census 2011 data Economy

The Northern Powerhouse accounts for 13.3 per cent of all UK’s Gross Value Added, compared to the 24.5 per cent that is contributed by London. Figure 5: Share of total UK GVA, 2013

24.5%

3.7% 2.2%

13.3% 1.5% 1.8% 1.1% 62.2% 2.6%

London Hull City Region Northern Powerhouse West Yorks Combined Authority Rest of UK Liverpool City Region Manchester City Region North East Combined Authority Sheffield Combined Authority

Source: ONS, 2014. Regional, Sub-regional and Local Gross Value Added 2013 data. Note: For total GVA figures, London refers to Greater London rather than the Primary owing to data limitations 3 Northern Powerhouse Factsheet • June 2015 Centre for Cities

Over the last 10 years, the Northern Powerhouse has performed below the UK’s average for GVA growth, while London has outstripped the region, growing nearly twice as fast as the Northern Powerhouse. Figure 6: Total GVA Growth, 2004-2013

60

50

40

30

20

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0 Total GVA Growth, 2004-2013 (%) 2004-2013 Growth, GVA Total UK London Hull City Region Liverpool City Region Northern Powerhouse Manchester City Region Manchester Sheffield Combined Authority North East Combined Authority West Yorkshire Combined Authority Yorkshire West

Source: ONS 2014.Regional, Sub-regional and Local Gross Value Added 2004, 2013 data. Note: For total GVA figures, London refers to Greater London rather than the owing to data limitations

Looking at GVA output per worker, although there is little difference in productivity between the city regions of the Northern Powerhouse, the average GVA output per worker is £44,850; 13 per cent behind the GB average, and 29 per cent behind that of London. Figure 7: GVA per worker, 2013

70,000 60,000 50,000 40,000 30,000 20,000

GVA per worker, 2013 (£) 2013 worker, per GVA 10,000 0 London Hull City Region Liverpool City Region Northern Powerhouse Manchester City Region Manchester Sheffield Combined Authority North East Combined Authority West Yorkshire Combined Authority Yorkshire West

Source: ONS, 2014. Regional, Sub-regional and Local Gross Value Added. BRES, Employment, 2013 data.

4 Northern Powerhouse Factsheet • June 2015 Centre for Cities

Jobs

The Northern Powerhouse contains 4.5 million jobs, accounting for 16 per cent of all Britain’s jobs. These jobs are not evenly spread across the region; 27 per cent of all jobs within the Northern Powerhouse are in Manchester City Region, and 22 per cent in West Yorkshire Combined Authority.

Figure 8: Share of all GB jobs, 2013

20

15 Sheffield Combined Authority

North East Combined Authority 10 Manchester City Region

Liverpool City Region 5 West Yorkshire Combined Authority Share of GB jobs, 2013 (%) 2013 GB jobs, Share of 0 Hull City Region Northern London Powerhouse

Source: NOMIS, 2015. BRES Public/private employment. 2013 data.

The map below illustrates, these jobs tend to be focused in city centres, particularly Manchester, Leeds and Newcastle.

Figure 9: The of jobs across the Northern Powerhouse Number of jobs, 2011

Newcastle city centre

North East Combined Authority

Hull City Region Manchester city centre

West Yorkshire Combined Authority Hull city centre

Liverpool City Region

Liverpool city centre

Manchester City Region Sheffield Combined Authority

Source: NOMIS, 2015. Census 2011, occupation. MSOA level.

5 Northern Powerhouse Factsheet • June 2015 Centre for Cities

Knowledge Intensity

20 per cent of all businesses in the Northern Powerhouse can be classed as knowledge intensive business services (KIBS), in comparison to London, where knowledge intensive businesses represent over 30 per cent of the total business base. Figure 10: KIBS as share of all businesses, 2013

35 30 25 20 15 10

KIBS as share of all as share of KIBS (%) 2013 business, 5 0 London Hull City Region Liverpool City Region Northern Powerhouse Manchester City Region Manchester

Sheffield Combined Authority North East Combined Authority West Yorkshire Combined Authority Yorkshire West

Source: NOMIS, 2015. ONS UK Business Counts – Enterprises, 2014 data. KIBS are defined based on 2007 SIC codes.

The same is true of jobs in KIBS. 12.7 per cent of all jobs in the Northern Powerhouse are in KIBS – in London, the figure is 24.3 per cent. However, significant differences can be observed between the city regions of the Northern Powerhouse – the share of jobs in KIBS in Manchester City Region is more than twice that of Hull City Region.

Figure 11: KIBS jobs as share of all jobs, 2013 30 25 20 15 10

jobs, 2013 (%) 2013 jobs, 5 KIBS as share of all as share of KIBS 0 London Hull City Region Liverpool City Region Northern Powerhouse Manchester City Region Manchester Sheffield Combined Authority North East Combined Authority

Combined Authority Yorkshire West Source: NOMIS, 2015. BRES Employment, 2013 data. KIBS are defined based on 2007 SIC codes.

6 Northern Powerhouse Factsheet • June 2015 Centre for Cities

Skills

The difference in the proportion of KIBS jobs in the Northern Powerhouse compared to London can be partly explained by the skill levels of their respective labour markets. 29 per cent of working age residents in the Northern Powerhouse are high-skilled, the same as Britain’s average; in London, that figure rises to 48 per cent.

Figure 12: Share of working age population with NVQ4+ qualifications, December 2014 60

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40

30

20

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0 qualifications, Dec 2014 (%) Dec 2014 qualifications, London Share of working age population with NVQ4+ population with NVQ4+ working age Share of Great Britain Hull City Region Liverpool City Region Northern Powerhouse Manchester City Region Manchester Sheffield Combined Authority North East Combined Authority West Yorkshire Combined Authority Yorkshire West Source: NOMIS, 2015, Annual Population Survey, December 2014 data. Universities

The Northern Powerhouse is well catered for by higher education institutions. The region contains 23 universities, six of which rank in the top 20 for research excellence nationally.

Figure 13: Universities located in the Northern Powerhouse

University of University of at Newcastle ! Research score !University of ! 3,976 - 5,454 (top 10 nationally) ! 2,578 - 3,975 (11-20) University of Durham ! ! 1,856 - 2,577 (21-30) ! 909 - 1,855 (31-50) ! 1 - 908 (51-154) ! No score

! City centre

City region boundary

Leeds College of Music

Leeds Trinity University ! ! University of ! !! ! !

! University of Bolton University of Liverpool School of Tropical Medicine ! University of !! Note: The research score refers to !! ! Liverpool John Moores University ! !! Royal Northern the number of submissions made ! ! Manchester Metropolitan !! College of Music ! to the 2014 Research Excellence Liverpool Institute for Performing Arts University Sheffield Hallam University Framework that are of 4* (world Liverpool Hope University University of Manchester leading) and 3* (internationally excellent) standard

7 Northern Powerhouse Factsheet • June 2015 Centre for Cities

Figure 14: Research score of universities in the Northern Powerhouse

Research universities within the Northern Powerhouse National research score rank (/154) University of Manchester 5 University of Leeds 9 University of Sheffield 13 Newcastle University 16 University of Durham 19 University of Liverpool 20 University of Hull 50 Manchester Metropolitan University 52 University of Northumbria at Newcastle 53 Liverpool John Moores University 62 Sheffield Hallam University 66 University of Huddersfield 67 68 University of Bradford 79 Leeds Beckett University 89 University of Sunderland 103 Liverpool Hope University 109 Liverpool School of Tropical Medicine 113 University of Bolton 128 Royal Northern College of Music 136 147

Source: REF, 2015. Research Excellence Framework Results. 2014 data.

Contact

For more information on the facts and figures within the Chancellor’s Northern Powerhouse, contact:

Elli Thomas Researcher [email protected] / 020 7803 4307

Or for press enquiries, contact:

Rita Beden External Affairs Manager [email protected] / 020 7803 4303

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