Report of the Strategic Director – Growth and Development.

This report provides an update on the development of a new Economic Strategy which sets out how the next phase of Manchester’s growth can ensure that the city’s economy is both high performing and drives a reduction in inequalities.

The Committee considered a report of the Strategic Director of Growth and Development, which provided an update on the development of a new Economic Strategy which sets out how the next phase of Manchester’s growth can ensure that the city’s economy is both high performing and drives a reduction in inequalities.

Key points and themes within the report included:

·         The vision and key purposes of the Strategy;

·         One option for the structure of the Strategy is to have five themes which sit around the core outcome of ensuring that Manchester’s economy is one of the most high-performing, whilst reducing inequality. The other themes would include:

o   A strategic approach to development and investment

o   Thriving, productive and innovative sectors

o   World class infrastructure, places and talent

o   Zero carbon growth

o   Including more people in economic opportunity

·         Engagement to be undertaken through roundtables and policy panels with leading economists; business engagement through the Business Sounding Board, Our Manchester Business Forum and Anchors Group; and partner engagement through the Our Manchester Forum and other relevant boards;

·         A proposal to approach an external organisation to provide challenge and thinking about the future of economic growth in the city and how this can have the greatest impact on reducing inequality; and

·         The Strategy will be scoped during autumn 2022 and will be formally developed in the first part of 2023 with formal approval in early summer 2023.

Key points and queries that arose from the Committee’s discussion included:

·         Commending the focus on economic growth;

·         Whether there was an intention to focus on living costs, income and middle-tier jobs;

·         The role of Manchester City Council both in the Greater Manchester region and wider North of England and the benefit of working in partnership to develop the economy;

·         A need for a broader focus around socioeconomic barriers such as unemployment and disability to reduce economic inequality;

·         How the objectives of the Strategy can be married with zero-carbon targets;

·         The importance of considering the types of industries to attract to Manchester;

·         Energy retrofitting, and how this was being undertaken for the Northwards housing stock;

·         If any difficulties had been experienced with retrofitting listed buildings;

·         How the Strategy would address negative externalities and impacts of growth; and

·         What a ‘resilient economy’ looks like.

The Strategic Director of Growth and Development emphasised that the Council had a long-term approach to growth and that the Economic Strategy did not signify a fundamental change in the Council’s focus. She highlighted that Manchester’s economy was much stronger than 20 years ago and some of the issues it currently faced were very different, such as unprecedented demand for housing, which needed to be addressed, but the Council would continue to work in partnership with the markets, utilise its assets and take a strategic approach to development and attracting external funding. The Strategy would be owned collectively by stakeholders and developed inclusively to recognise the need for collaboration in addressing a potentially-challenging economic period.

The Strategic Director of Growth and Development acknowledged a need to examine living costs and income and commented that key enablers for work would be studied as part of work on the Strategy. It was also stated that Manchester has an increasingly-recognised national role and the Strategy needed to reflect the Council’s position both within Greater Manchester and the wider region.

The Executive Member for Housing and Development commented that removing barriers to economic growth and investment which exacerbate inequality is a key objective for the Strategy.

Members were advised that significant work had been undertaken to retrofit Northwards housing stock, which had been brought back under Council ownership. The Executive Member and Deputy Executive Member for Housing and Development had recently visited properties in Harpurhey and Charlestown which would be retrofitted to zero-carbon standards. Other works included spending £83 million in recent years on energy improvements to Council-owned properties in North Manchester; providing energy advice to 2100 residents which saved an estimated total of £370k a year; insulating 1600 solid-wall properties; external rendering insulation to 14 high-rise blocks of flats; high and low-rise heat pumps to 580 homes; solar voltaic panels on 2350 roofs and homes; solar thermal panels on 8 retirement blocks; low-energy lighting to 300 blocks of flats; 11,000 homes with high-efficiency condensing boilers; 12,000 homes with double glazing; 5000 homes with cavity wall insulation; 7000 homes with loft insulation; and securing external funding for these works.

In reference to listed buildings, it was highlighted that work is undertaken closely with the Planning and Listed Building Officers to ensure retrofits are sympathetic and appropriate to conservation areas where applicable. Some external works are inappropriate but works such as double glazing, door sealant and heat source pumps could be installed to improve energy efficiencies of listed buildings.

The Executive Member for Housing and Development recognised that more needed to be done and that the Council wanted all properties to be of a standard which meant it would be cheaper, safer and warmer for residents.

The Strategic Director for Growth and Development acknowledged the enormous cost of retrofitting the Council’s housing stock and work was being undertaken to identify new and innovative ways to invest in sustainable retrofit and development. The Council was working on this with 3Ci, a partnership between Connected Places Catapult, Core Cities UK, London Councils and other local authorities across the UK, and other Core Cities.

Assurances were provided that the Council would seek to employ all possible levers to address challenges between growth and sustainability. The quality of development, businesses and sectors would be an important consideration and the definition of a ‘resilient economy’ would be established partly through the development of the Strategy and external challenge. The Strategic Director for Growth and Development explained that diversity between industries would be at the heart of the Strategy and help the resilience of the economy.

In response to a query as to how the Strategy would address negative externalities and impacts of growth, the Strategic Director of Growth and Development explained that Council-owned land and assets would be used to mitigate risk and meet the priorities and objectives of the Strategy.

Decision:

That the report be noted.