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Northern Powerhouse factsheetKey figures on the city regions in the Northern PowerhouseJune 2015

Introduction

The idea of a ‘Northern Powerhouse’ was first introduced in June 2014 by the Chancellor of the Exchequer, George Osborne, in a speech in Manchester. He made the case that the lack of economic and physical connections between the cities and city regions of the North of England 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 London 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 Greater Manchester Devolution Deal, Transport for the North, 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 up of the city regions of Liverpool, Manchester, Leeds, Sheffield, 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 City Region Combined Authority; Greater Manchester Combined Authority; West Yorkshire Combined Authority; Sheffield Combined Authority; Humber Local Enterprise Partnership; North East Combined Authority

1

Northern Powerhouse Factsheet • June 2015 Centre for Cities

2

Population

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

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

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

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

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LondonNorthern Powerhouse

Liverpool City Region

West Yorkshire Combined Authority

Sheffield Combined Authority

Hull City Region

North East Combined Authority

Shar

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UK

popu

lati

on, 2

013

(%)

Manchester City Region

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14

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wth

, 200

4-2

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(%)


3

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

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

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 Urban Area owing to data limitations

!

!

!

!

!!

North East CombinedAuthority





Hull City Region

! City centre

0.4%

0.1%

1%2%

3%

3%1%1%

4% 2%

Commuting pattern

City Region boundary

62.2%

24.5%

13.3%

Rest of UK

London



West Yorks Combined Authority


Hull City Region


Northern Powerhouse

2.6%1.1%

1.5%

2.2%3.7%

1.8%

Source: NOMIS (2015), Census 2011 data


4

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

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 Primary Urban Area 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

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

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GVA

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5

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

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 geography of jobs across the Northern Powerhouse

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

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LondonNorthern Powerhouse






Hull City RegionShar

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GB

jobs

, 201

3 (%

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Leeds city centre

Hull City Region



Manchester city centre


Hull city centre

Newcastle city centre

Liverpool city centre

Sheffield Combined AuthoritySheffield city centre

Number of jobs, 2011


6

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

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

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

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KIB

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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

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

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!Liverpool John Moores University

University of LiverpoolLiverpool School of Tropical Medicine

University of Northumbria at NewcastleUniversity of Newcastle upon Tyne

University of Durham

University of Sunderland

Liverpool Hope University

University of Bolton

Manchester MetropolitanUniversity

University of Salford

University of Manchester

University of Bradford

University of Huddersfield

Leeds Trinity University University of Leeds

Sheffield Hallam University

University of Sheffield

University of Hull

!

Liverpool Institute for Performing Arts

Royal Northern College of Music

!Leeds Beckett University

!

Leeds College of Music

!

!

!

!

!

3,976 - 5,454 (top 10 nationally)

2,578 - 3,975 (11-20)

1,856 - 2,577 (21-30)

1 - 908 (51-154)

909 - 1,855 (31-50)

Research score

! No score

! City centre

City region boundary

Note: The research score refers to the number of submissions made to the 2014 Research Excellence Framework that are of 4* (world leading) and 3* (internationally excellent) standard


© Centre for Cities 2014

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59 - 65 Upper GroundLondon SE1 9PQ

www.centreforcities.org

Centre for Cities is a registered charity (No 1119841) and a company limited by guarantee registered in England (No 6215397)

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

University of Salford 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

Leeds Trinity University 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

northern powerhouse factsheet - centre for cities powerhouse factsheet ... manifesto, for the...

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