Rachel Reeves has been traveling around Britain to find solutions for the country’s stagnant economy, focusing on boosting productivity as a priority for her autumn budget. Productivity remains essential for increasing wages and living standards without inflation. Observing varying productivity levels, Greater Manchester has achieved significant growth in output per hour, outperforming other regions since 2004. London’s productivity has stalled, while Manchester shows signs of narrowing the gap, demonstrating considerable transformation in recent years.
Productivity is a dull word of vital importance. Growing the measure of output for each hour of work is an economic secret sauce, enabling growth in wages and living standards over the long run without stoking inflation.
Between 2004 and 2023, Manchester recorded the highest rise in gross value added for each hour worked of any combined authority in the country.
London, once the driver of UK growth, has effectively stalled. The capital is still streets ahead in terms of productivity and the UK remains one of the most regionally unequal countries in Europe.
Manchester is beginning to close the gap, with growth of 31% since 2004. This transformation comes as no surprise to those familiar with the north-west.
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