PROGRESS STATEMENT Working towards a Greater Local Industrial Strategy

October 2018

1 Industrial Strategy Progress Statement

Our vision for the Building on investments Local Industrial Strategy In recent years, Government and - £15m towards the Greater Greater Manchester have made a Manchester Productivity & Developing ambitious Local Industrial Strategies is central to number of investments to support Inclusive Growth Programme Greater Manchester which the Local - £15m investment in the delivering the national Industrial Strategy’s vision to build an Industrial Strategy will build on: economy fit for the future, with prosperous communities across International Screen School at Manchester Metropolitan University the , and to drive up productivity. ``£243m allocated through the Transforming Cities Fund - £5m investment in the Greater This progress statement sets out plans The Local Industrial Strategy will Manchester Cyber Innovation Hub for delivering a Strategy by March set out: ``£105m allocated to the Henry - £10m towards the Greater 2019, and highlights emerging priorities Royce Institute, the National ``A robust and granular evidence Institute for Material Science, Manchester Life Science for Greater Manchester’s Local base driven by an Independent Industrial Strategy. Greater Manchester Research and Innovation Investment Fund Prosperity Review and focused on a - £5m investment in the Graphene (GMCA) intends select number of agreed priorities; ``A Housing Package of up to consult on these plans and to £68.25m to support the Engineering & Innovation Centre ``How Greater Manchester will priorities for their Local Industrial delivery of 227,200 homes by at the University of Manchester harness its assets through the Strategy from October 2018, seeking 2035 backed by the Greater ``Significant investment in Enterprise Grand Challenges to unlock views from businesses, universities, Manchester Spatial Framework Zones at Airport City focusing on colleges, the Voluntary greater productivity and earning advanced manufacturing, industrial and Social Enterprise (CVSE) sector, power across the city region; ``Establishing one of the first Tech biotech & pharmaceuticals and and residents across the city region. Nation Hubs in Manchester ``How Greater Manchester will healthcare and the Oxford Road capitalise on its strengths, and ``£23.8m in Local Full Fibre The Greater Manchester Local Corridor focusing on life science, address its weaknesses, to enhance Network funding to improve health innovation & med tech Industrial Strategy will provide a the Foundations of Productivity broadband connections distinctive and long-term vision. set out in the Industrial Strategy to Over £663m in Local Growth It will set out how the city region will deliver inclusive growth. The Strategy `` maximise its contribution to UK will be tailored to the priorities of Funding including: productivity based on its strengths different places across the city region; - £71m towards the and assets, as well as addressing Greater Manchester Skills ``Opportunities for future collaboration barriers to growth and economic Capital Programme inclusion. It will describe how we will between Greater Manchester capitalise on Greater Manchester’s Combined Authority, Government, and best asset – its people – and ensure local public and private stakeholders that they can all benefit from economic to achieve these shared priorities; growth and the opportunities it ``Specific, achievable, long-term brings throughout their lives. priorities in line with the national And it will provide a long-term roadmap Industrial Strategy and the for the local economy – supporting Greater Manchester Strategy1. coordinated action around a shared, coherent vision and set of outcomes.

2 3 Industrial Strategy Progress Statement Developing the evidence base

The success of devolution in Greater Manchester was built ``An exploration of the city region’s ``A review of the infrastructure on a strong evidence base – particularly through the Greater innovation ecosystems, analysing needs of Greater Manchester to Manchester Independent Economic Review2. the interrelationships between raise productivity, including the public and private innovation potential for new approaches to The Local Industrial Strategy will take The views of industry will be brought in Greater Manchester; unlock additional investment. a similar evidence-based approach. into the analysis through a number The GMCA has established a Greater of challenge sessions which will bring ``Analysis of education and skills Manchester Independent Prosperity together businesses, policy makers, and transitions, reviewing the role Review to develop this. This will academics. This approach will ensure of the entire education and skills be led by a Review Panel chaired the Greater Manchester Local Industrial system in Greater Manchester by Professor Diane Coyle (Bennett Strategy is underpinned by a forensic and how individuals pass through Professor of Public Policy, University understanding of the foundations of key transition points; and of ), which will oversee productivity, and the drivers of increased the development of the evidence prosperity, across the city region. base for the Local Industrial Strategy. Research to be commissioned includes: The Panel’s membership includes: ``A naudit of productivity, taking ``Professor Ed Glaeser (Professor of a deep-dive into productivity Economics at Harvard University) performance across Greater ``Stephanie Flanders (Head of Manchester, and identifying Bloomberg Economics) the main policy levers that could raise productivity; ``Professor Henry Overman (Professor of Economic Geography at the ``A granular analysis of the “long School of Economics) tail” of low-productivity firms within Greater Manchester and ``Professor Mariana Mazzucato how productivity could be raised (Professor in the Economics in them. This will include a case of Innovation at University study of the social care sector; College London) ``A study to understand Greater ``Darra Singh (Government & Public Manchester’s national and Sector Lead at Ernst & Young) international supply chain The Panel will independently verify and trade linkages; Greater Manchester’s existing evidence and oversee the commissioning of new research into priority areas.

4 5 Industrial Strategy Progress Statement Understanding the Economy: Local Strengths and Challenges

Greater Manchester has a long industrial heritage. It has The city region’s highly trained Yet, despite these strengths, many transformed from being the birthplace of the Industrial workforce includes one of the parts of Greater Manchester are Revolution to become a services-rich economy and hub of digital, largest graduate pools in Europe, still not realising their potential. with a strong concentration of STEM By building a rigorous evidence creative, low carbon and health innovation industries while graduates and postgraduates, and base on the city region’s strengths maintaining a strong industrial base. a long and successful history of and opportunities, enhancing the Greater Manchester is made up of a Its devolved health and social care entrepreneurship and enterprise. foundations of productivity, and diverse range of local economies: from system mean that the city region Greater Manchester’s business developing local ambitions to capitalise the dynamic Manchester city centre, is uniquely placed to translate this strengths and people have enabled on the global growth opportunities to the creative cluster in Salford Quays research excellence into practice. it to develop a strong reputation as of the Grand Challenges, the Greater and the concentration of research In advanced materials there is an a competitive place to do business. Manchester Local Industrial Strategy excellence in Oxford Road Corridor, to opportunity to develop ‘Graphene As the first place to establish a will deliver improved productivity the city region’s town centres and the City’, building on the new Henry Combined Authority and one of and earning power and spread industrial hub of Park. The city Royce Institute, the UK’s National six pioneering Mayoral Combined prosperity across the city region. region sits at the heart of the Northern Institute for Material Science, Authorities, the city region has the Powerhouse, with connections to the Research and Innovation, to bring analytical capacity, governance great cities of the North, together world-leading science and partnerships, and delivery and South. It has strong links to with businesses to create jobs and experience to pioneer an ambitious the rest of the world by air through growth. The city region’s assets and Local Industrial Strategy. Manchester Airport and by water capabilities in digital, energy and through the Manchester Ship Canal. industrial biotechnology also offer Devolution to Greater Manchester in real scope for future development2. recent years, including a unique £6bn Greater Manchester is a place per annum integrated health and social that sparks new ideas and applies Greater Manchester has a dynamic care budget and delivery, will support them to industry. It has the largest enterprise base of 105,000 implementation of this strategy. concentration of excellence in health businesses, with 6 million working research nationally outside the South age people within an hour’s travel East of – home to the only time providing a deep talent pool. Academic Health Science Centre in the North and one of Europe’s largest single-site clinical-academic campuses, the Oxford Road Corridor.

6 7 Industrial Strategy Progress Statement Emerging Ambitions: Grand Challenges

The Greater Manchester Local Industrial Strategy will consider the Grand Challenges. Early work has focused on responding Greater Manchester also has a to the Ageing Society and Clean number of assets and powers Growth Grand Challenges: supporting that makes it an ideal testbed for the national missions and helping boosting health, quality of life, and put the UK at the forefront of productivity in people of all ages. the industries of the future. These include: These two Challenges play to the unique ``The Ageing Hub: a partnership of strengths of Greater Manchester, in researchers, local authorities, the the wake of its health and social care health and social care partnership, devolution deal and the established voluntary and community partnership of public and private sector organisations and other institutions behind this year’s Mayor’s agencies to coordinate a strategic Green Summit. This is emerging response to the opportunities and work and does not capture the full challenges of an ageing population scope of the Local Industrial Strategy across Greater Manchester. ``World-class ageing research By harnessing the well-established that will be published in 2019. centres, including the University of institutions across the city region, ``A single system approach to health Manchester Institute for Collaborative and working in partnership with Ageing Society and social care founded on the historic Research on Ageing (MICRA), Health other centres of expertise across National Mission: “People will enjoy £6bn p.a. Health and Social Care Innovation Manchester, the Derma- the , there is five extra healthy, independent years devolution deal. With a population of pharmacology Unit Partnership an opportunity to establish Greater of life by 2035, whilst narrowing nearly three million people, this allows between University of Manchester Manchester as the place to trial new the gap between the experience new treatments and technologies and Salford Royal, the Manchester neighbourhood-scale approaches of the richest and poorest” to be tested at scale, and to pioneer Biomedical Research Centre, and the to ageing, new goods and services new models of care (including Like all UK cities and regions, Greater new Older People and Frailty Unit. targeted at the over-50s, and new linking health policy to housing). Manchester’s population is ageing. By The GMCA will aim to build on this models of care for older people. 2036, 14% of Greater Manchester’s ``The Big Lottery-funded £10m success through the Local Industrial There is also an opportunity to boost population will be 75 and over – an Ambition for Ageing programme to Strategy and put in place plans to the contribution of older workers to increase of 75% from 2011. Greater create age-friendly communities. meet the Challenge set out by the the Greater Manchester economy3: Manchester has already set out a clear Prime Minister’s mission for the the Local Industrial Strategy will build ambition to be the UK’s first age-friendly Ageing Society Grand Challenge, on the work being done to deliver the city region, recently recognised by the enabling people in the city region Working Well programme, with the World Health Organisation (WHO). to enjoy five extra years of life objective that by 2020, 5,000 more while reducing inequalities. 50-64 year olds will be in employment,  relative to a 2016 baseline of 316,000.

8 9 Industrial Strategy Progress Statement

Within existing budgets, the Greater ``Trial ways to support the objectives Greater Manchester is seeking to Public-private partnerships already Manchester Local Industrial of the Fuller Working Lives progress its ambitions through flourish in these organisations, including Strategy will consider options to: Strategy and pilot a new model existing innovation support through pioneering demonstrators such ``Bring together businesses, citizens, for supporting over 50s back available through Government. as CityVerve (the UK’s Smart Cities academia and government to into work, in coordination with Successfully addressing this challenge and Internet of Things demonstrator) create a test-bed for new products, the , will require Greater Manchester to make and Triangulum (an international technologies and social innovation to Department for Work and Pensions the most of its existing science and collaboration demonstrating how meet the growing market represented and the Centre for Ageing Better. innovation assets. Greater Manchester’s through ‘smart green growth’ carbon by older people, domestically and All of these will build on and further universities have world-leading assets, emissions can be reduced while internationally. This would trial the pioneering work done by such as the University of Salford’s boosting the economy). The challenge emerging markets of knowledge, Greater Manchester on health and Energy House (the only fully climate is to spread innovation beyond these goods and services for older social care integration through controlled energy research facility in the pockets to the wider city region. people, testing opportunities and its Taking Charge strategy. world), the University of Manchester’s linking them to Greater Manchester’s National Grid Power Systems Research business, export and skills base. Clean Growth Centre, and Manchester Metropolitan Greater Manchester’s Local Develop, pilot and test new University’s Hydrogen Partnership. `` Ambition: “To become carbon neutral neighbourhood-scale models at least a decade earlier than 2050” that support ageing in place. This will involve utilising and expanding Greater Manchester will lead the way in Greater Manchester’s research transitioning to a Clean Growth urban partnerships, and building on the economy. The challenge is clear: if experience of the £10m Ambition for Greater Manchester fails to take action, Ageing programme. This will look forecast increases in population and to the broader changes required the economy will lead to a 3% increase to support ageing, including in in carbon emissions by 2035. But housing, culture and local transport. an ambitious response also has the opportunity to put the city region at Deliver a new model of independent `` the forefront of low-carbon industry. living support, Living Well at Home, through transformed adult social The city region has already shown care and health. This will keep people significant ambition: in March 2018, well and independent in their own Greater Manchester held its inaugural homes and communities of choice, Mayor’s Green Summit bringing capitalising on the transformational together over 600 public and private potential of new assisted-living sector representatives. There is an technologies and develop careers opportunity to build on this success in care with progression through by transitioning to a cleaner built education and apprenticeships. environment, and boosting business This will be underpinned by pooled productivity through greater health and social care budgets, energy and material efficiency. with a single Accountable Officer to ensure effective leadership.

10 11 Industrial Strategy Progress Statement

The Local Industrial Strategy will ``Developing innovative finance consider options to realise Greater and delivery mechanisms to Emerging Ambitions: Manchester’s ambitions following the retrofit homes and commercial Foundations of Productivity Mayor’s Green Summit, including: buildings, making them more ``Establishing Greater Manchester energy efficient and reducing as an energy transition region by carbon emissions and fuel bills for residents in Greater Manchester. As the Greater Manchester Local Industrial Strategy is developed building on existing strengths to and consulted upon, the GMCA and Government will ensure it develop a place-based, whole ``Establishing a Greater Manchester system approach to energy supply Clean Growth Productivity complements to strengthen the Industrial Strategy’s foundations and demand which is fit for the future, Programme that will focus on of productivity. and in doing so creating a facilitative supporting Greater Manchester People environment and local energy businesses through accelerating Greater Manchester’s people are foundations for a strong strategic market which integrates existing the implementation of energy its greatest asset. Future prosperity partnership for the system as a technologies and trials new ones. and material efficiency measures depends on Greater Manchester whole – in relation to schools, T levels, in the design and production ``Reducing emissions from the residents - and young people Further Education for 16-18 year of products and services. transport system, including by in particular - having the skills, olds and those aged 19+, Advanced moving towards an emissions-free aspirations, and hope for the future Learner Loans and Apprenticeships – bus fleet, transforming cycling and needed to succeed and exceed particularly at key transition points. walking, establishing a new public expectations in all aspects of their This strategic partnership will be based sector-led commercial model for the lives. An important aspect of this will around the Budget announcement of Greater Manchester electric vehicle be to get more businesses engaged a Greater Manchester Skills Advisory charging network, and establishing in schools, building on BridgeGM, Panel. In Greater Manchester, an a partnership with businesses and increasing the entrepreneurial Employment and Skills Advisory that embeds low carbon travel culture in schools, both of which are Panel will be set up involving all principles in businesses practices. central to future productivity growth. stakeholders, including central Greater Manchester and Government government, to develop and implement have a shared ambition to ensure a comprehensive local skills and employers are at the heart of the skills employment plan that supports system, including through the growth transitions from pre-16. This plan will of high quality apprenticeships. underpin the Local Industrial Strategy To implement the Local Industrial by understanding and responding Strategy, Greater Manchester needs to current and future growth, skills to deliver the skills individuals need and labour market needs. The Panel to succeed in the labour market and will support strategic planning for employers need to drive productivity post-16 skills provision, such as and growth. Greater Manchester and the adult education budget. Government agree that achieving this requires more than just a single deal or initiative: this is about building the

12 13 Industrial Strategy Progress Statement

In particular, through the As an early example of collaboration, Infrastructure Business Environment Employment and Skills Advisory Government and Greater Manchester Digital and transport connectivity Greater Manchester is already a good Panel, Greater Manchester and will work together to support the are vital foundations of Greater place to start and grow a business. Government will work together development of the National Retraining Manchester’s future prosperity and The Local Growth Fund-supported on a place-based approach to: Scheme (NRS) and examine how its role as a key hub of the Northern Productivity and Inclusive Growth ``Support talent attraction, Government and Great Manchester can Powerhouse. An efficient transport programme is developing a single, retention and quality in Greater work together on alignment between system is a critical element of a strong coherent business support system for Manchester’s schools, colleges the NRS and the development of the economy, enabling people to take Greater Manchester. A new Greater and learning providers; Greater Manchester Local Industrial advantage of economic opportunities. Manchester Good Employment Charter Strategy. Greater Manchester will Transport for Greater Manchester’s is also being designed with employers, ``Ensure the successful implementation also work with the Department 2040 Strategy sets out how we will employees and others in the city of T levels in Greater Manchester; for Education to understand the achieve a cleaner, greener, more region. This will support employers ``Ensure the effective transition needs of the NRS target group. prosperous city region through better to improve productivity and services of 16 to 18 year olds into Ideas connections and simpler travel. The through the development of good further learning or work; Local Industrial Strategy will seek to jobs and best employment practice. In addition to the work to harness build on the recent £243m allocation of Greater Manchester’s Independent ``Improve apprenticeship uptake to Greater Manchester’s assets to find meet GMCA’s ambition of seeing a the Transforming Cities Fund – as well Prosperity Review will explore cutting-edge solutions to the Grand as local levers such as the Transport options for addressing productivity, 45% increase in apprenticeships Challenges, the Greater Manchester across the city region, support Fund and Earnback Deal – to ensure including both the “long tail” of low- Local Industrial Strategy will seek people, goods and information flow productivity businesses and the employer collaboration for to build on the successes of recent apprenticeship levy purchasing as quickly and efficiently as possible. “high tail” of high productivity, high initiatives – such as the CityVerve, We will identify how local and national growth, and globally-competitive and transfers (working with the the UK’s Smart Cities and Internet of National Apprenticeship Service), government, and the private sector, firms. It will also consider issues such Things demonstrator, and the Landing can better coordinate to deliver the as access to finance, exporting, and and work with the Institute for technology enterprise incubator at Apprenticeships to ensure appropriate infrastructure needed for Greater management and leadership. The MediaCityUK – and consider how Manchester realise its growth potential. Local Industrial Strategy will consider Apprenticeship Standards are best to use expertise in cognitive developed and in place; and We will work together to promote how to build on the announcement by computing and clusters of commercial digital infrastructure, exploring the Chancellor of £20m new funding ``Adopt a more strategic approach expertise in data analytics, cyber how to accelerate the rollout of full for an industry-led Made Smarter to careers advice and guidance, security, cloud computing and UX to fibre to 100% coverage by 2033. (industrial digitalisation) pilot in the implementing the Careers raise productivity. Building on health North West, which will provide support Strategy (jointly with the Careers devolution and the establishment of for up to 3,000 manufacturing SMEs to & Enterprise Company). Health Innovation Manchester, the adopt and exploit digital technology Local Industrial Strategy will also to increase their productivity. These activities will enhance the seek to create an ecosystem where commitment already made by the health innovation and life sciences Department for Education to develop a can continue to thrive, working to Memorandum of Understanding (MoU) identify ways for Greater Manchester to make sure devolution of the Adult to help deliver the Government’s Education Budget works for the wider ambition of reaching 2.4% of GDP skills system in Greater Manchester. expenditure on R&D by 2027.

14 15 Industrial Strategy Progress Statement Prioritisation Evaluation

The Independent Prosperity Greater Manchester will set out in its Review Panel will present Local Industrial Strategy its approach its final recommendations to evaluation of its interventions, including how to integrate cutting- to Greater Manchester and edge independent evaluation methods Government in early 2019. at the outset of programmes and The Greater Manchester sharing the evaluation results widely. Local Industrial Strategy will be finalised by March 2019, following further local consultation and evidence gathering. Government and Greater Manchester are clear that the Local Industrial Strategy will set out an agreed and Collaboration shared view of the opportunities for Greater Manchester, as well as the challenges that will need to be The Greater Manchester Local Industrial Strategy will be a joint addressed, to maximise its contribution vision for both local leaders and Government. to UK productivity and earnings growth. The Mayor of Greater Manchester, Engaging with Greater Manchester The Local Industrial Strategy will not the Deputy Mayor for Business & businesses will be central to the imply any new spending commitments, Economy, the Chair of the Greater approach to developing the Local but will inform the strategic use of local Manchester LEP, and the Secretary Industrial Strategy. The GMCA will funding streams and, where relevant, of State for Business, Energy engage with businesses across Greater spending from national schemes. and Industrial Strategy, will be Manchester, from micro businesses responsible for the overall leadership and SMEs to large companies, of the Local Industrial Strategy. through existing networks and Jürgen Maier (Chief Executive of representative bodies and will issue a Siemens UK) and Professor Dame formal consultation in October 2018 Nancy Rothwell (President of the to capture the views of business. University of Manchester) will act The Director General for Business as Greater Manchester’s Industrial and Science in BEIS and the Chief Strategy Champions, leading Executive of GMCA will champion engagement with businesses Greater Manchester’s priorities and the and universities on behalf of development of the strategy across Greater Manchester LEP. local and national government.

16 17 Industrial Strategy Progress Statement References

1. Greater Manchester & East Science and Innovation Audit (2016) 2. Details of the Manchester Independent Economic Review are available here: http:// manchester-review.co.uk/ 3. If the Greater Manchester 50- 64 employment rate was at the all-age Greater Manchester average, GVA could grow by as much as £901.6million

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