Expansion of Growth Deal boosts local plan for Greater Manchester

The Greater Manchester Local Enterprise Partnership has agreed an expansion to its Growth Deal with the Government which will see an extra £56.6m invested in Greater Manchester between 2016 and 2021. This is in addition to the £476.6m of funding committed by the Government on 7 July 2014. Over the lifetime of its Deal (2015-2021) the Local Enterprise Partnership estimates that up to 5000 new jobs could be created and that it has the potential to generate up to £140m in public and private investment.

The additional proposed projects include: 

• Further investment in the Transport Works Programme which will provide a better integrated transport network across Greater Manchester
• A Skills Capital Programme that will allow residents and employers to access the skills for growth in the Greater Manchester economy
• Investment in the Greater Manchester Business Growth Hub to support services to business

In addition, the Government is also committed in principle to the use of discounted Public Work Loans Board borrowing to support the development of a new residential development at Manchester Place.

The Greater Manchester Growth Deal is part of a long term plan to devolve at least £12 billion from central government to local economies. The plan aims for every part of the country to be a motor of growth for the national economy – building on the strength of the Greater Manchester area.

The Prime Minister said: “Giving local communities the power and the money to unlock growth and development and make the spending decisions that work for them is a key part of our long-term economic plan to secure a brighter future for Britain and ensure a recovery for all. 

“And this is happening right here in Manchester, with more money announced today for key projects to boost the local economy as part of the multi-million pound expansion of the Government’s Growth Deals.

“And because the money will be in the control of a partnership of local community, business and civic leaders it means it will go on the things that really matter to people and businesses here.

“That is what Growth Deals are all about, backing local people and investing in the infrastructure, housing and skills that will drive forward local economies, create more jobs and opportunities for hardworking people and supercharge all parts of our country.”

The Deputy Prime Minister said: “A quiet revolution is underway in Greater Manchester and across the country, as Growth Deals signal the death of the culture where Whitehall calls the shots. I’ve seen for myself the difference it makes to give the region more power over skills, over business support, over infrastructure spending.

"I am delighted to announce the expansion of the Greater Manchester Growth Deal today.

“The Coalition Government has been relentless in our efforts to sort out the public finances and set firm foundations for growth. Growth Deals help create a stronger economy and a fairer society by boosting local economies, and providing more jobs, better transport and affordable homes.”

Lord Peter Smith, Chairman of the Greater Manchester Combined Authority, said: "This is another welcome deal which will help support the ambitious plans outlined in our Growth and Reform Plan. The plan aims to make the region a net contributor to the national economy by 2020, wiping out the gap between tax generated in the area and public spending by boosting growth and reforming public services.

"Creating the conditions for growth requires an integrated transport system which connects people with jobs, skills provision which equips Greater Manchester people with the tools they need to access the opportunities created and strong support and advice for business which wish to expand.

Measures towards all of these goals are included in the latest growth plan and will play their part in our overall plan to drive the region forwards."

Mike Blackburn, chair of GM LEP, said: “The latest Growth Deal has again delivered a number of exceptionally positive measures for Greater Manchester.

“From a business perspective, perhaps the most welcome news this time around is the new Skills Capital Programme; which demonstrates a clear effort to better align Greater Manchester’s skills offer to the sectors that are earmarked for long-term economic growth. We estimate that this programme has potential to benefit up to 5,400 additional learners.

“Likewise the additional investment into the Business Growth Hub is extremely welcome and will enable Greater Manchester to continue to make noticeable improvements to the business support services offered.

“I’m also delighted that our transport network continues to attract the investment that it deserves. Investment in the city region's strategic transport network to create and strengthen local, national and international connections, is critical to improving access to markets, supporting economic growth and placing Greater Manchester at the heart of the Northern Powerhouse.”