Powering Recovery – Manchester’s Economic 1 Recovery and Investment Plan Manchester's Economic Recovery and Investment Plan POWERING RECOVERY CONTENTS FOREWORD 3 1. INTRODUCTION 8 2. MANCHESTER’S MODERN JOURNEY 9 3. A PIVOTAL POINT 14 4. MANCHESTER’S FUTURE 21 5. STRATEGIC INVESTMENT 23 6. MANCHESTER ECONOMIC RECOVERY AND INVESTMENT PLAN 34 Powering Recovery – Manchester’s Economic 3 Recovery and Investment Plan FOREWORD Manchester is a city with a long and Manchester’s Economic Recovery Manchester has the foundations proud tradition of triumphing over and Investment Plan is honest and building blocks to re-establish adversity to meet the challenges about the economic challenges its previous momentum as the UK’s ahead. We’ve achieved this by we face, but it also provides a premier growth city, but it will do so developing a unique set of mature statement of confidence in a in a way that is even more inclusive cross-sector partnerships to create reinvigorated future for our city. and environmentally sustainable. a shared vision for the future, and It has two main elements: early Our message to businesses, deliver pragmatic and innovative actions to cushion the immediate investors, developers and the solutions to our problems. This impact of the COVID-19 pandemic Government is clear – Manchester approach has resulted in three downturn on Manchester people is ready and able to play a leading decades of sustained economic and businesses, and a ready- role in levelling up the country’s growth driven by investment in made, long-term investment economy, and we all need to play skills, transport infrastructure, programme in key sectors to help our part to ensure this happens. and major strategic developments power the recovery by creating in the city centre, in our districts, new jobs at all levels, and acting as Sir Richard Leese and around Manchester Airport. a catalyst to further investment. In Leader of Manchester Our economy has become more particular, four strategic areas of City Council diverse, with digital, creative, investment can drive this growth – technology and health-innovation innovation, Manchester city centre businesses now thriving alongside and urban realm, zero-carbon more traditional sectors, such as (including housing retrofit), and financial and professional services. north Manchester. The plan has This economic growth, building been developed in a Manchester on the strengths of our existing way through partnership with communities, has helped to the private sector, including encourage a younger, more diverse the Business Sounding Board, and higher-skilled population. development partners, our public- sector partners, housing providers, However, now there is a new set universities, cultural organisations, of challenges that needs to be and other stakeholders, such as overcome. The COVID-19 health the Manchester Climate Change pandemic is a crisis unlike any other Partnership, to ensure that the and it comes at a time when we are city’s ambitious plans achieve a already facing uncertainties about wide buy-in. the UK’s exit from the European Union, changes to our global trading relationships, and the need to tackle climate change. Yet these challenges and the economic interruption and hardship of the pandemic must not diminish the city’s aspiration for a more inclusive economy, which was set out in the Our Manchester Industrial Strategy in 2019. Powering Recovery – Manchester’s Economic 4 Recovery and Investment Plan EXECUTIVE SUMMARY This is Manchester’s Economic Recovery and Since March 2020, the focus has been on protecting Investment Plan. It has been produced by Manchester the city’s businesses and people from the impact City Council in partnership with the private sector of COVID-19, and now is the time to align this and other stakeholders, and complements the approach to the Our Manchester Industrial Greater Manchester Combined Authority and Greater Strategy to focus on the three pillars: Manchester Local Enterprise Partnership city region proposals. It sets out what Manchester is doing to respond to the COVID-19 pandemic and reinvigorate its economy, with plans to protect and create jobs, and support new business opportunities in the city's economy. The unexpected arrival of COVID-19 has not changed PEOPLE the city’s aspirations, nor will it derail the city’s social and economic objectives. As identified in the Our Manchester Strategy and the Our Manchester Industrial Strategy, the city continues to look forwards, building on the historic developments and assets delivered in previous decades, delivering a more inclusive economy, supporting the foundational PLACE economy, and achieving the ambition to be zero- carbon by 2038, at the very latest. PROSPERITY This Plan sets out how Manchester can play a leading role in the levelling-up agenda, with ambitious plans to build on recent investment in economic assets and infrastructure and accelerate growth in high- productivity sectors. These plans will be based on a new partnership arrangement at national, subregional and local levels, where a progressive and inclusive city – working hand in hand with business, academia and other partners – can tackle our new priorities, which are focused on people, assets, innovation, and investment. Powering Recovery – Manchester’s Economic 5 Recovery and Investment Plan A PIVOTAL MOMENT to drive forward a new approach SEISS: To reflect the recent changes to investment and partnership. to the furlough scheme, the UK- The city now finds itself at a pivotal wide Self-Employment Income moment, setting out the vision EARLY RECOVERY Support Scheme (SEISS) has been for the city and how to achieve extended, with self-employed it in a post-COVID-19 world, The 2020/21 winter period will individuals receiving 80% of compounded by a series of be very challenging for many their average trading profits uncertainties. The city faces a businesses, the self-employed and for November. crucial turning point in setting workers, and there is a need to put in train the course for the next 20 in place early support packages Protecting cultural institutions: years. Accelerated by the impact to assist those affected by the The Government has made funds of COVID-19, the challenges for the national lockdown and a possible available to help arts and cultural 2020s are the same as the previous slow return to full economic and institutions deal with the effects of decades – setting out a vision, a social activity. The Government the national lockdown and social- plan and a way forward. The Our needs to act decisively in this distancing measures. While many Manchester Strategy lays out those crucial period, and Manchester of the major institutions are based foundations, and it must now be has proposals that will provide in London, it is important that considered in the context of new, support over the next nine months sufficient funds are made available more challenging hurdles, some of to ameliorate the scale of the for the North and Manchester- which also offer new opportunities. economic downturn in the city. based institutions and venues. Manchester’s investment Training and skills package: Phoenix Programme for The programme and project pipeline, The two-year Skills and Cultural and Creative Economy: allied to the role of the Council Employability Recovery The proposed Cultural and Creative and its own business and civic Programme will assist more Phoenix Fund will (a) work with partnerships, are critical to than 6,000 residents each year independent venues (b) support the Government’s levelling-up to improve their skills by staying studios and workshops to remain agenda and national, regional and in education or developing new open (c) provide commissioning subregional structures and policies. skills in areas of market demand. grants for small independent Therefore, the Comprehensive It will also help other residents companies, freelance and artisan Spending Review 2020 2020 is to take up new self-employment producers to provide outputs for not only an opportunity to focus opportunities. Heart of Manchester events and on macroeconomic and fiscal activities (d) organise a series planning and priorities, but it Targeted furlough: The original of events, fairs and festivals to can also provide the essential Job Retention Scheme was due showcase Manchester’s cultural framework for creating the right to end in October and be replaced and creative works. incentives and drivers for aligning by the Job Support Scheme, local, subregional and national which was less attractive to INVESTMENT PLAN investment priorities to deliver businesses. However, as a result local and national priorities. of the November lockdown, the The Manchester Economic Government has put in place an Recovery and Investment Plan Greater recognition of the extension of the Job Retention takes its lead from the Our importance of the city’s recovery, the Scheme. At the time of writing, the Manchester Industrial Strategy, levelling-up agenda and long-term Coronavirus Job Retention Scheme with an initial programme of productivity and economic growth – also known as the furlough investment under the three pillars. should be reflected in the use of scheme – will remain open until In addition, there are several deals/partnerships that allow early March 2021 , with employees important long-term investments investment in pipeline projects and receiving 80% of their current of major significance to the city the development of a new wave of salary for hours not worked, up to a that would benefit from a new job creating programmes, with an maximum of £2,500. approach to investment and increased use of flexibilities and new partnership. These are listed financial tools. Our four strategic Local Restrictions Support Grant: below and set out in more investment propositions – In addition, business premises in detail in chapter 5. innovation, the city centre, England that are forced to close zero-carbon and housing retrofit, will receive local grants worth up and north Manchester (outlined to £3,000 per month under the on the following page) – Local Restrictions Support Grant.