Achieving Inclusive Growth in Greater Manchester

What can be done?Ruth Lupton and Ceri Hughes Inclusive Growth Analysis Unit, University of Manchesterwith support from Lucy Brill and Anthony Rafferty

Achieving Inclusive Growth in Greater Manchester

Contents

Introduction 2

Opportunities and Challenges in Greater Manchester: A Summary 4

Understanding Inclusive Growth 6

What is inclusive growth? 6

DifferentinterpretationsofinclusivegrowthandIGAU’sposition 6

Anoverviewofwhatinclusivegrowthmightlooklike 8

Developing a more inclusive economy 10

Improvingpayandjobquality 10

Boostingemploymentthroughbuildinglocalsupplychains 14

Thenatureofeconomicdevelopment 16

Including more people in economic opportunity 19

Learningandskills 19

Connectingpeopleandjobs 23

Transportinfrastructure,servicesandcost 26

Supportingemployment 27

Delivering inclusive growth 28

Anexplicitstrategy 28

Multipleactors,inclusivegovernance,andstrategicintegration 29

Focusonthemostdisadvantagedpeopleandplaces 31

Summary and conclusions 32

Thescopeandlimitationsofthisreport 32

TowardsInclusiveGrowth–whatshouldbedone? 33

Nextsteps 34

Appendix 1: Methodology 35

2

Introduction

TheInclusiveGrowthAnalysisUnitwasestablishedin2016bytheJosephRowntreeFoundation(JRF)and

theUniversityofManchester(UoM)tosupportinclusivegrowthinGreaterManchesterandotherUKcities.

Itsobjectivesaretohelpensurethatpovertyreductioniscentraltocurrentpolicydebatesandactionaround

economicgrowth,the‘NorthernPowerhouse’anddevolutioninGreaterManchester,andtosupportthe

developmentofevidence-basedstrategiesforinclusivegrowth.

Thisreportfollowsourinitialpublication:Inclusive Growth: Opportunities and Challenges for Greater Manchester,

whichsetoutthestatisticsoneconomicgrowthandpovertyinGreaterManchestersincethemid-2000s.

Thereportrevealedsomemajorchallenges:anincreasingneedtobuildabroaderandstrongerskillsbase,an

unevengeographyofgrowth,andalabourmarketwithproblemsoflowpayandincreasinglyprecariouswork.

AlthoughGMisoneofEngland’slargestandfastestgrowingeconomies,anestimated620,000peoplewere

livinginrelativepovertyin2013/14.

ThesechallengesarenotuniquetoGreaterManchester.Theyreflectprocessesofeconomicglobalisation

andtechnologicalchangeandhowthesehavebeenhandledinUKpolicy,producinghighlevelsofpovertyand

inequality.Particularpartsoflargeindustrialcities,andparticulargroupsofpeople,haveexperiencedthesharp

endofthesechanges.Sotheseproblemswillnotallbesolvedatlocallevel.Butinaneraofmetromayorsand

thedevolutionofpowerstocity-regions,itistimelytoconsiderwhatcouldbedonedifferentlyinGMtoensure

thatasthecity-regionbecomesmoreprosperous,italsobecomeslesspoorandmoreequal.

Tohelpstartthisconversation,weconductedaconsultationwithanumberofindividualsandgroupsin

GreaterManchesterwhoareknowledgeableaboutthecity-region’seconomy,povertyandinequalities,and

theconnectionsbetweenthem.Theyincludedrepresentativesoflocalauthoritiesandotherpublicsector

bodies,thirdsectororganisationsofvariouskinds,businessesandtradesunions.Moredetailsareincludedin

Appendix1.Weaskedthesestakeholderstotakestockofprogressoninclusivegrowthtodate,identifypriority

areasforactionandhighlightexamplesofexistingworkwhichcouldbebuiltupon.Wealsoconductedareview

oflocalauthorityandGM-widestrategiesaroundeconomicdevelopment,employmentandskillsandpoverty

reduction,toidentifywaysinwhichlinkagesarebeingmadebetweentheeconomyandthelifechancesofthe

city-region’smostdisadvantagedresidents.

Whatwereporthereistheresultofthatlisteningexercise.Throughreportingontheseconversationsand

strategies,weaimtohelpbuildanunderstandingofsomeofthethingsthatmightbedonelocallyinorder

tobuildamoreinclusiveeconomyandtoincludemorepeopleineconomicopportunity.Asinclusivegrowth

3

comesontothepoliticalagendainternationally,nationallyandlocally,whatkindofthingscouldbeconsideredat

theGMlevel?Who,beyondthecity-regionauthorities,needstoact?Whatassets,resources,relationshipsand

ideasalreadyexistthatcouldbedevelopedandcapitalisedupon?

Thereportisnotastrategyforinclusivegrowth,norisitcomprehensive.Itdoesnotcoverallpotential

stakeholderviews.Similarlybecauseoftimeandresourceconstraintstheviewsofspecificcommunitiesare

notrepresented.Wehavenottestedpeople’ssuggestionsinthelightofotherevidence,workedoutwhat

theywouldcosttoimplementormodelledtheirpotentialeffects.Norhaveweestimatedthepotentialand

limitationsofanylocalactionvis-à-vischangestonationalpoliciesandinvestmentstrategies.

However,wehopethatthecoverageofthisexercisecanprovidesomeinitialinsightsintowhatinclusivegrowth

meansandmightlooklikeinGreaterManchester.

4

Inrecentyears,theGreaterManchestereconomyhasperformedrelativelystronglycomparedwiththatof

otherUKcities.GMwasEngland’sthirdlargestcity-regioneconomyin2014,andhadexperiencedthefourth

highestgrowthratebetween2007and2014.

ButGreaterManchesterhasnotbeenimmunetotheeconomicrestructuringthathasaccompanied

globalisationandtechnologicalchange,includingincreasingproblemsoflowpay,precariousworkandlackof

in-workprogression,andunevengeographiesofgrowthwhichhaveleftparticularareasandgroupsofpeople

behind-neitherabletocontributefullyto,norbenefitfrom,thegrowthoftheeconomyoverall.

InGreaterManchester:

■ anestimated620,000peoplewerelivinginrelativepovertyin2013/14;

■ 21%ofneighbourhoods(LowerSuperOutputAreas)wereinthetop10%mostdeprivedinEnglandin2015;

■ 23.2%ofthejobsdonebyresidentspaidlessthantheUKLivingWagein2015,comparedwith20.7%

nationally;

■ 180,000workingagepeoplein2015hadnoqualifications;

■ AlthoughcentralManchesteristhedrivingforceofGreaterManchester’seconomy,Manchester(LA)had

thelowestemploymentrateinthecity-regionin2015at62.8%,comparedto73.5%fortheUKasawhole,

partlybutnotwhollyaccountedforbyitsstudentpopulation.RateswereonlyalittlehigherinOldhamand

Rochdale(64.8%and64.6%respectively);

■ Growthineconomicoutput(GVA)hasbeenstrongestinthecentreandsouthoftheconurbationashas

employmentgrowth.Therearenow60,000morejobsinthesouthofGMthanbeforetherecessionwhilst

thenorthhasonlyjustreacheditspre-recessionlevel.

Therearealsopersistentdifferencesbetweensocialanddemographicgroupsintheiraccesstothelabour

market.In2015inGMtheemploymentrateofpeoplefromethnicminoritybackgroundswas57.2%compared

with72.9%forpeoplefromwhiteethnicbackgrounds,whileonly42.7%ofdisabledworkingagepeoplewerein

employment.

Allthesedatasuggestthatdespiterecenteconomicsuccessanddespiteclearpoliticalcommitmentto

greaterinclusion,thereisaverylongwaytogotowardsbeingacity-regionwithsustainablylowlevelsofpoverty

oroneinwhicheveryonecancontributetoandbenefitfromgrowingprosperity.

Opportunities and Challenges in Greater Manchester: A Summary

5

Thesehighlevelsofeconomicexclusionhaveenormoushuman,socialandeconomiccosts.Theyare

detrimentalnotjustforthepeoplewhoexperiencepovertyandlowlabourmarketopportunitybutfor

everyone,whetherthroughlostproductivity,lowerspendingandtaxrevenuesorthroughtheneedfor

additionalpublicspendingonpolicyinterventionsthataimtotacklethecausesandconsequencesofpoverty.

Furtheranalysisanddetailcanbefoundinourfirstreport:Inclusive Growth: Opportunities and Challenges for

Greater Manchester.

http://www.manchester.ac.uk/inclusivegrowth


6

Understanding Inclusive Growth

What is inclusive growth?

Inclusivegrowthisarelativelynewterm,gainingtractionbecauseofgrowingevidencethatincreasingly

prosperouscitiesarenotnecessarilydecreasinglypoor,normoreequal.Thekeyideaisthatifwewanttohave

societieswhicharemoreequalandhavelesspoverty,weneedtofocusontheeconomyandtheconnections

betweeneconomicandsocialpolicies.Strategiesforinvestmentandeconomicdevelopment,productivity,

skills,employmentandwageregulationmustbeintegraltoattemptstoachievegreaterfairnessandsocial

inclusion.Likewise,enablingmorepeopletoparticipatefullyineconomicactivitymustbefundamentalto

developingprosperousandsustainableeconomies.

TheOECDdescribesinclusivegrowthaseconomicgrowththatcreatesopportunityforallsegments

ofthepopulationanddistributesthedividendsofincreasedprosperity,bothinmonetaryandnon-

monetaryterms,fairlyacrosssociety(OECD2015)

Different interpretations of inclusive growth and IGAU’s position

Inevitably,inclusivegrowthmeansdifferentthingstodifferentpeople.Somepeopleusetheterminclusive

growthverybroadly,todescribeanoverallagendaofsocialjustice,fairnessandsocialinclusionoperating

acrossmultiplespheresofactivity,notjusttheeconomy.Asonerespondentinourconsultationputit

“Inclusive growth is really about the inclusivity of everything”.1

Inthisreport,andinIGAU’sworkmoregenerally,wetakeanarrowerfocus.We see inclusive growth as being about the economy and economic inclusion.Inclusivegrowthwillcontributedirectlytoreducingpovertyandeconomicinequalities,andshouldcontributetoreducingwidersocialinjusticesinthesensethattheyarelinked

toincome,wealthandeconomicparticipation.However,inclusivegrowthisonlyasubsetofabroadersocial

justiceagendaandindeedofnotionsofwhata‘goodcity’,‘faircity’or‘justcity’shouldlooklike.

Workingwithinthiseconomicunderstandingofinclusivegrowth,therearealsodifferentperspectives.Some

peoplecometotheideaemphasisingtheneedforgreaterinclusionwithinthebroadparametersofexisting

1Toprotecttheanonymityofrespondents,noquotationshavebeenattributed.

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economicmodels.Theyemphasiseissuessuchasbetterconnectivity,remodelledandimprovedpublic

services,anddevelopingassets,resilienceandenterprise.InFigure1,wedescribethisasa‘growthplus’

perspectiveoninclusivegrowth–thenatureoftheeconomygoesrelativelyunchallenged,andtheneedfor

widereconomicparticipationandafairerdistributionofbenefitsareemphasised.Peopletakingthisviewtend

totalkmoreabouttheimportanceofeconomicgrowthasanobjectiveandemphasisethepointthatexcluding

manypeoplefromeconomicopportunityisaconstraintongrowth.

Figure 1: Different interpretations of the term ‘inclusive growth’

‘Growth plus’ ‘Inclusive economy’

This position sees the existing economic model as necessary

and/or unproblematic but acknowledges the need to

connect more people in to this growth. More growth requires

more inclusion.

This position maintains that the economy should serve inclusive, social goals. The

current economic model produces inequality so needs to change to achieve greater

inclusion.

Focus on connectivity and thesupply side of the labour market

Focus on the demand sideof the labour market

Pulling up the bottom of thedistribution rather than questioning

business models that create inequality

Challenging business modelsthat create inequality

Inclusion important because itsupports growth

Inclusion important in itsown right

Better distribution of future growthrather than of growth that

has already occurred

Distribution of existingprosperity not just dependence

on future growth

Otherpeopleofferastrongercritiqueofcurrentmodelsofgrowthplacingmoreemphasisonchangingthe

economyinwayswhicharelesslikelytoproducepovertyandinequalities.InFigure1,wedescribethisasan

‘inclusiveeconomy’perspective.Peopleholdingthisviewtendtoarguethateconomicgrowthshouldonlybe

oneofthegoalsofasuccessfulsociety,andthatgrowthstrategiesshouldbedesignedwithothergoalssuch

aswell-beingorequalityinmind.Amongthepeopleweinterviewed,somepeopleprioritisedpovertyreduction,

andthisisanelementthatisintegraltoIGAU’sobjectives.Otherspointedtopersistentinequalities:a‘social

class divide’orsharpdifferencesbetweentheexperiencesofdifferentethnicgroups.

IGAU’spositionisthatthe‘inclusiveeconomy’positionisastrongerversionof‘inclusivegrowth’thanthe

‘growthplus’versionandthatengagementwiththenatureofeconomicgrowthisfundamentaltoreducing

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inequalityandtoreducingpoverty.However,thisdoesnotmeanthatnothingcanbeachievedbya‘growthplus’

versionifthisismoreactivelypursuedthanithasbeeninpublicpolicyinrecentdecades.

Noteveryoneisconvincedthat‘inclusivegrowth’candeliver,2andconcernsaboutitsadoptioninnationaland

localpolicywereexpressedbysomeofthepeopleweconsulted.Somerespondentsweresuspiciousthat

inclusivegrowthmightbebeingadoptedasapoliticallyacceptabletermbycorporateinterestsandpoliticians

whohadnorealcommitmenttochangebutrecognisedtheneedtobeseentobetakingaction.Itmight

thereforeleadtoaweakandinsufficientresponsefocusingonfamiliarpolicydiscussionsofproductivity,labour

marketsandskillsratherthaneconomicchange.Itmightalsohaveinsufficientfocusonreducingpoverty.

Somerespondentsdislikedtheimpliedfocusonfuturegrowth,andstressedtheneedforabetterdistribution

ofthebenefitsofthegrowthachievedtodate.Therewasalsosomesupportfortheviewthatfurther

economicgrowthwouldbeenvironmentallyunsustainable–somefeltitshouldthereforenotbetheobjective

andstrategiesforinclusionshouldnotdependuponit.

Despitethesereservations,therewasawidelysharedviewamongstthestakeholdersweconsultedthatthe

emergenceoftheterminclusivegrowth,howeverimperfect,offeredanopportunitytoconvenepeoplearound

ideasofafairercitywithlesspoverty.Somerespondentswentasfarastosaythattheywere‘relieved’or‘excited’

thatinclusivegrowthwasbeingtalkedaboutinthecity-region.Differentperspectiveswillcontinuetoexiston

whatinclusivegrowthisorshouldbe,butwesuggestthattheideaisbroadenoughtoprovidea‘jumpingoffpoint’

forasetofstrategiesandactionsdesignedtoensurethatprosperityandinclusiongohand-in-hand.

An overview of what inclusive growth might look like

Takingthebroadestunderstandingofinclusivegrowth,itisevidentthatalmostanyaspectofeconomic

andsocialpolicycouldbeconsidered,including:reducinghousingandlivingcosts;ensuringadequatesocial

security;enablingparticipationindecision-making;buildingsocialconnectionsandcohesion;reducing

isolation;reducinghatecrime;stimulatingvolunteering;improvingaccesstoadviceandsupportservices;

opportunitiestoparticipateinculture,sportandrecreation;andincreasingcommunitysafety.

Inlinewithour‘moreeconomic’understandingofinclusivegrowth,wehaveconcentratedonthosestrategiesand

actionsrelatedmoredirectlytotheeconomy.Weseetheseasbeingcontainedintwobroadspheres:‘developing

aninclusiveeconomy’(sometimesbroadlydescribedasthe‘demand’sideofthelabourmarket)and‘including

morepeopleineconomicopportunity’(sometimesdescribedas‘thesupplyside’ofthelabourmarket).

Figure2outlinesverybroadlythekindsofthingsthatcouldbeincluded,andthedifferentkindsofactorswho

mightbeinvolvedindeliveringchange.

Thisframeworkandemphasisinfluencedourchoiceofconsulteesforthisreportandthepeoplewhom

organisationsnominatedtorespond.AsAppendix1shows,themajorityofintervieweeswereinroles

concernedwitheconomicdevelopment,employment,enterpriseandskills,orwereinbroadroleswhich

gavethemperspectivesonissuesrelatingtopovertyandinequalityinthecity-region.Farfewerwereinvolved

directlywiththemanyandvariouswiderstrategiesthatsupportemploymentsuchastransport,housing,

childcareandelderlycareandhealth,norwideraspectsofplaceandtheenvironment.Itisimportantto

emphasisethatthesectionsthatfollowdonotclaimtodevelopacomprehensiveframeworkforinclusive

growthpolicies.Theyreflecttheexperienceandviewsofpeopleworkingintheseprimaryareas.

2McInroy,N.(2016)Inclusivegrowth:thenextoxymoron?NewStartbloghttp://newstartmag.co.uk/your-blogs/inclusive-growth-next-oxymoron/;Lee,N.(2016)Ourdividedsociety:challengesforachievinginclusivegrowthintheUK,bloghttp://blog.policy.manchester.ac.uk/posts/2016/08/our-divided-society-challenges-for-achieving-inclusive-growth-in-the-uk/

9

Figure 2: Action to support inclusive growth

Developing amore inclusive

economy

Adequatepay

Key actorsCentral governmentEmployersLocal governmentCivil society

Key actorsEmployersLocal governmentTransport providers

Civil societyNational Health ServiceCentral governmentHigher Education InstitutionsTraining providersHousing providers

Schools and colleges

Communityeconomic

development

Industrialstrategy and

infrastructure

Localsupplychains

Opportunitiesfor job and pay

progression

Equitableemployment

practices

Includingmore peoplein economicopportunity

Early yearsand

education

Health,housingand care

Transport

Employmentprogrammes

Adult learningand skills

Careersadvice andguidance

Wehavealsoconcentratedonwhatcouldbeachievedatcity-regionlevelinGreaterManchester.Respondents

tothisconsultationwerewellawareoftheconstraintsonachievinginclusivegrowthlocally.Nationalpolicies–

fromtaxation,industrialstrategyandinvestmentdecisions,throughfinanceandindustrialrelationssystems,to

investmentintrainingandeducation,housing,healthandothersocialpolicies–settheframeworkforgrowthand

inclusioninEngland.Respondentscommentedparticularlyonthelimitsofdevolutionandthecontinuingclimate

ofpublicspendingcuts,withwelfarecutstakingmoneyoutoftheeconomyandjoblossesinthepublicsector.

Inthiscontext,oneversionofinclusivegrowthwasgrowththatdeliversimprovementsto‘thepublicsphere’

(publicservicesandamenities),reversingsomeoftheeffectsofausteritymeasures.However,devolutionand

themayoralelectionwerealsoseenasopportunitiestosetanewagenda–onethatshouldnotjustbeleft

topoliticiansandthepublicsector–andtoworktogetherondevelopingaGreaterManchesterapproachto

inclusivegrowth,identifyingtheactionsthatcanbetakenatthecity-regionlevel.Asonerespondentputit:

“devolution has opened up a conversation about what Greater Manchester is, what it does, what it wants to be

and what levers the leaders can use to encourage a more evenly shared prosperity”

Therestofthisreportaimstocontributetothatconversation,takingstockofthesituationtodateand

exploringsomeoftheoptionsforfutureactioninthedevolvedcontext.

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Developing a more inclusive economy

Improving pay and job quality

ThechallengesoflowpayinGreaterManchester,andintheUKmoregenerally,areextensive.NewEconomy

hasestimatedthat22.5%ofpeopleinGreaterManchesterwerelowpaidin2014(earninglessthantwothirds

ofnationalmedianincome),higherthantheUKaverageat21.2%.Anevenhigherproportionearnedlessthan

theUKlivingwageof£7.85in2015( justover24%).3

TheissueoflowpayisofincreasingimportanceinGreaterManchester;between2004and2014thenumberof

lowpaidworkersincreasedbyaround23,000to233,500peopleevenastheproportionremainedlargelystable,

reflectingincreasesintheoverallsizeoftheworkforce.Thereisalsoevidencethatopportunitiestomoveout

oflowpayarelimited.61%oflowpaidpeopleareestimatedtostillbeinlowpayaroundoneyearon(99,000)in

GreaterManchester.Athird(33%)escapedlowpayand6%wereworkless,meanwhile51,000peoplewhowere

notinitiallylowpaidatthestarthadmovedintothiscategory15monthslater.4

Thehistoricalsituationofbettertermsandconditionsinthepublicsectorisalsobeingerodedtosomeextent

underthepressuresofausterity.Realwagesinthepublicsectorhavefallenbyaround20%,andunionsreport

hiddenpaycuts(suchasonelocalauthorityrequiringstafftotakefivedaysunpaidleaveperyear)aswellas

increasedworkloadsasstaffnumbershavebeenheavilycut.Pressuresonlocalauthorityspendinghaveled

toparticularlydifficultconditionsinoutsourcedservices,withmanystaffintheseservicesnotbeingpaidthe

LivingWageandsomeexperiencingsubstantialcutsinincomeduetochangesintermsandconditions

(e.g.premiumsforunsocialhours).5WhiletheUKHomeCareAssociation(UKHCA)estimatedinSeptember

2014thatcouncilswouldneedtopay£15.74perhourofhomecare(including47pprofit)toenableproviders

tocomplywiththeNationalMinimumWage,ratesinGreaterManchesteratthesametimeweresubstantially

lowerthanthis–rangingfrom£11.30inTamesideto£13.71inWigan.6

Butstructuralproblemswiththelabourmarketarenotconfinedtotheissueoflowpay.Jobsecurityandaccess

tobasicemploymentrights(includingleaveentitlementsandasafeworkingenvironment)haveallbeenranked

3NewEconomy(2016)LowPayandProductivityinGreaterManchester;provisionalestimatesforlowwagejobsdonebyresidents(ratherthanworkers)in2015showasimilar,ifslightlylower,proportionwerepaidbelowtheLivingWage(23.2%).SeeIGAU(2016)InclusiveGrowth:OpportunitiesandchallengesforGreaterManchester.

4http://neweconomymanchester.com/media/1701/progression-from-low-paid-work.pdf5MemorandumonpublicsectoremploymentprovidedbyUNISONNorthWest6ShortBriefingontheStateofSocialCareinGreaterManchester,UNISONNorthWest

11

ashighlyimportantforlowpaidworkers.7Yetthereisconcernaboutaworseningofemploymentstandards

forsomeworkers.Forexample,nationalsurveydatasuggestthat2.5%ofpeopleinemploymentwereonzero

hourscontractsin2015.8Thoughpeopleonthesecontractswereworkinganaverageof26hoursperweek,

thecontractswouldappeartoofferlittlesecuritytoworkersandaroundathirdofpeopleonthemwanted

morehours.Overall,CitizensAdviceestimatethat4.5millionpeopleinEnglandandWalesareininsecurework

wheretheydon’thaveregularhoursorpredictableshifts.9

Meanwhile,amuchgreaterproportionofpeopleundertakepart-timework,whichisassociatedwithlowpay

andaffordsfeweremploymentprotections.Peopleearningbelowtheweeklyearningslimit(equivalentto

around17hoursemploymentonthe2015/16minimumwage)havenorighttostatutorysickormaternitypay.

Self-employedworkersarealsoinavulnerablepositionastheyarenotemployeesandthereforedonothave

employmentrightsanddonotbenefitfromemployernationalinsurancecontributions.Thisisconcerninggiven

thatthereareindicationsthatbogusself-employmentexistsinmanysectorsoftheeconomyandmaybe

beingpromotedbysomepayrollcompanies.10

Grimshawetal.identifyfourkindsof‘protectivegaps’thatarecontributingtolowpayandprecariouswork:11

socialprotectiongaps(suchasbenefitsandtaxcredits),enforcementgaps(suchastribunals),representation

gaps(suchasunionrepresentation)andemploymentrightsgaps(suchasstrongerminimumwageregulation

andworkingtimerequirements).Thisframeworkmakesitclearthatmuchofthescopeforactioninthisarea

currentlyliesatnationallevel.Somerespondentstothisconsultationwerealsoclearthat,givenissuesoflow

payandpoorjobqualityinthepublicsector,afairerdistributionoftheproceedsofgrowthcanonlybeachieved

byincreasedpublicspendingonservicessuchasresidentialcare.Currentarrangementsalsoplacethese

responsibilitiesatcentralgovernmentlevel.

Nevertheless,respondentshighlightedthingsthateitherwerebeingdoneorcouldbedoneatthecity-regionlevel.

TheLivingWagecampaign,outlinedintheboxbelow,wasrepeatedlycitedasanimportantandeffective

initiativebutonewhichneededtoachievemuchbroaderreach.Thecampaignworkswithemployersto

promotepaymentofawagecalculatedwithreferencetothecostofabasicstandardoflivingintheUK.The

LivingWageisdistinctfromthe‘NationalLivingWage’,theenhancedminimumwageintroducedin2016for

thoseaged25andover.

Living Wage campaign

TheLivingWageiscalculatedwithreferencetothecostoflivingandis£8.25perhourintheUK

(£9.40inLondon)in2015/16.TobecomeanaccreditedLivingWageemployer,employersmustpay

theLivingWagetoalltheirdirectemployeesaswellasotherworkersandcontractors.12 The Living Wage

iscalculatedeachyearandemployersmustthenincreasethebaserateinthemonthsfollowingthe

announcementofthenewLivingWagerate.EmployerssignalicencewithLivingWageUKtothiseffect.

7Stuart,F.,Pautz,H.,Crimin,S.&Wright,S.(2016)Whatmakesfordecentwork?AstudywithlowpaidworkersinScotland,InitialFindings.8EstimateforOctobertoDecember2015.ONS(2016)Contractsthatdonotguaranteeaminimumnumberofhours9CitizensAdviceanalysisofLabourForceSurveydataforQ2of2015.Insecureworkestimatesareanaggregateofestimatesforzerohourscontracts,thosereliantonpaidovertime,peopleworkingmorethan8hoursovertimeperweek,onatemporarycontract,workingforanagencyorworkingirregularshiftpatterns(split,day/nightsforexample)

10Grimshaw,D.Johnson,M.,Keizer,A.andRubery,J.(2015)ReducingPrecariousWorkthroughSocialDialogue:Ananalysisof‘protectivegaps’facingpeopleatworkintheUK-Part1Report.http://www.research.mbs.ac.uk/ewerc/Portals/0/Documents/uk-national-report-part-1.pdf

11Ibid12Anyonewhoworkstwoormorehoursinanygivendayinaweek,foreightormoreconsecutiveweeksinayear

12

Intervieweesalsodescribedhow‘employmentcharters’werealreadybeingimplementedinsomelocal

authorityareas.ThesewereseenasawayofencouragingthewideradoptionoftheLivingWagewhilst

promotingawiderrangeofgoodemploymentpractices(seetheboxbelow).Theexampleshighlightthe

differentwaysinwhichachartermightbeusedacrossGreaterManchesterasawholetoendorseparticular

employmentpractices,andanumberofintervieweesraisedtheideathatthismightbesomethingthenew

mayorcouldchampion.Discussionwouldbeneededtodeterminewhat‘standard’wouldberequiredof

employerswishingtosignup,andpreciselywhattheincentivesshouldbe,inordertomakeadoptionlessofa

‘hardsell’foremployers.Forexample,oneintervieweearguedthatbusinessratediscounts,nowdevolvedto

localauthorities,mightbeofferedtoLivingWageemployers.

Employer Pledges and Standards

SeveralGMLocalAuthoritieshavelaunchedschemestoengageemployersandsecuretheirsupport

toboostemploymentstandards.Salford City Mayor's Charter for Employment Standardsaimsto

encourageemployersinthecitytocreatejobsandtrainingopportunitiesfordisadvantagedpeople,

worktowardtheintroductionoftheLivingWage,opposetheuseofzero-hourcontractsandpromote

otherworkingpractices.Employersmayalsomakeanadditionalpledgetosourcegoodsandservices

fromlocalcompanies.EmployerscansignupasaSupporter(workingtowardsimplementationofthe

pledges)oraCharterMarkHolder.Inreturnthecouncilmayofferbusinesssupportservices,suchas

assistancewithlocalrecruitmentandselectionandadviceonaccesstolocalsupplychains.Thecharter

waslaunchedin2013.SalfordCouncilisalsotheonlyGMlocalauthoritythathasbecomeanaccredited

LivingWageemployer,althoughseveralothersareincontactwiththeGMLivingWageCampaign.

The Salford Standard

http://www.visitsalford.info/locate/the-salford-standard.htm

GMhasasuccessfulLivingWagecampaign,withover100accreditedLivingWageemployers.Many

moreemployersarepayingtheLivingWagebutarenotformallyaccredited.Nationally,theChamberof

CommerceestimatesthatoverhalfofmembersarepayingtheLivingWagetoalltheirstaff.13Salford

CityCouncilisanaccreditedLivingWageemployer,andnegotiationsareon-goingtosecurethe

commitmentofotherlocalauthoritiestoLivingWageaccreditation.

ArecentstudyoftheimpactoftheLWinpartsofLondonfoundthatemployersbenefitedfrom

increasedworkercommitmentanddecreasedrecruitmentcosts.14YettheGreaterManchester

ChamberofCommercehashighlightedthatfirmswithmanypart-timeemployeesonlongerhoursface

particulardisincentiveswhenconsideringaswitchfrompayingtheNationalMinimumWagetotheLiving

Wage:employerNationalInsuranceContributionswillrisesubstantiallyforpeoplewhoareworkingpart-

timefor20-24hours,from0-3.4%(plusarebate)to10.8–13.4%.15

13BritishChambersofCommerce(2014)WorkforceSurveyhttp://www.britishchambers.org.uk/J4990%20-%20A4%20BCC%20WORKFORCE%20SURVEY%20INFOGRAPHIC%20-%20JOBS%20AND%20GROWTH_V5.jpg(accessed08/09/16)

14TrustforLondon(2012)CostsandBenefitsofaLivingWage,http://www.trustforlondon.org.uk/wp-content/uploads/2012/10/Living-Wage-Costs-and-Benefits.pdf

15GMCC,TheLivingWage:statingthecase

http://www.visitsalford.info/locate/the-salford-standard.htm

13

Despitetheseactivitiesaimingtotacklelowpayandraiseemploymentstandards,anumberofinterviewees

expressedconcernthatsignificantnumbersofemployersrelyonlow-skilledlabourtosupporttheirbusiness

models.InfactNewEconomyestimatesthatagreaterproportionofemployersoperate‘lowcost,lowvalue’

businessmodelsinGreaterManchesterthanintheUKasawhole(21%comparedto18%).Inrecognitionof

this,someintervieweesemphasisedtheneedforgreaterinvestmentinbusinesssupportanddevelopment

activitiestohelpemployersmoveupthevaluechaintocompeteforhighervaluegoodsandservicesandtobe

inabetterpositiontoincreasewagesandinvestintheirworkforce.Wereturntothisissuelaterinthereport.

Theroleofpublicsectoremployers,actingindividuallyandcollectively,wasstronglyemphasisedbysome

consultees,whoarguedthatthereshouldbeastandard‘ask’ofthecity-region’smajorpublicsectoremployers,

aswellasperhapsitswider‘anchorinstitutions’(largeandlongstandingorganisations)suchasuniversities,

leadingfirmsandsportingandculturalinstitutions.17ThiscouldinvolvepayingtheLivingWageaswellastrade

unionrecognitionandmaximisingthelocalbenefitsofprocurementprocesses.Thelatterarediscussedin

moredetailinthefollowingsection.Itwasthoughtthatthecity-region’smajoremployersarelikelyindividually

tobepromotingarangeofgoodpracticesintermsofemploymentorworkforcedevelopmentwhichoffered

thepotentialformutuallearningandperhapscollaboration.Ourattentionwasalsodrawntoexamplesfrom

previouspolicyerasandfromothercitiesthatcouldberevisited,suchastheNHSSkillsEscalatorwhich

aimedtopromoteworkerprogressionandencourageNHSemployerstoparticipatebymakingexplicitcareer

progressionpathwaysbetweendifferentlevelsintheorganisation.18Theideaofacharterorchartersformajor

publicsectoremployersorforanchorinstitutionsmorebroadlywasalsomooted.Forexample,nationally,

UNISONhasan‘EthicalCareCharter’whichcouncilsandcareprovidersareencouragedtosignupto,involving

commitmentstostafftraining,tonotusing15minutevisits,andtopayingtheLivingWage.Largecouncilsin

theNorthWestincludingLancashire,CumbriaandWirralhavealreadysigneduptotheCharter,andsupportis

beingsoughtfromcouncilsinGreaterManchester.

InOldhamtheCouncilinvitesemployerstocommittoaFair Employment Charter.Thissetsminimum

standardsforjobswithintheborough,includingpayingthelivingwage,tradeunionmembership,

stableemploymentandprogression.EmployersmaysignuptotheCharterwithoutsubscribingtoall

ofitselements,orwhilstworkingtoachievesome(suchaspayingtheLivingWage)–applicationsare

assessedbythecouncil’sfairemploymentteam.

Oldham Fair Employment Charter http://www.oldham.gov.uk/info/200270/working_at_the_council/1303/oldham_s_fair_employment_

charter

Othercouncilshavedevelopedemployerpledgeswiththeaimofencouragingemployerstomake

jobsandskilldevelopmentopportunitiesavailabletolocalresidents,andparticularlytoyoungpeople.

Forexample,BoltonCouncildevelopedtheBolton Employer Pledge,whichemployerssignedupto

todemonstratetheir‘commitmenttoskillsdevelopmentandsupportingpeopleintoemploymentin

Bolton.’16LiketheTrafford Pledgethisfocussesonadvertisingvacancieslocally,offeringplacements

andapprenticeshipstolocalyoungpeopleandpeoplewithdisabilities.Unlikethepreviousexamples,

thesehavelesstosayaboutthequalityofthejobsthatareonoffer,withtheemphasisonsupporting

employmententry.

16http://www.bolton.gov.uk/sites/documentcentre/Documents/Pledge%20card%20front%20and%20back.doc17AninstanceofthisisdiscussedinJackson,M.(2014)Livingwageandtheroleoflocalgovernment,CLESandtheGreaterManchesterLivingWageCampaign18Ray,K.,Foley,B.&Hughes,C.(2016)Risingtothechallenge:apolicyagendafortacklinglowpay,TheWorkFoundation.

http://www.oldham.gov.uk/info/200270/working_at_the_council/1303/oldham_s_fair_employment_charter

http://www.oldham.gov.uk/info/200270/working_at_the_council/1303/oldham_s_fair_employment_charter

14

Severalrespondentspointedtotheimportanceofflexibleworking,giventhatalargeshareofnon-employment

andunderemployment(workingbelowaperson’spotential)hasbeenlinkedtocaringresponsibilities,

particularlyforwomen.19TheTimewiseFoundationcanoffersupportandencouragementtocouncilsand

otheremployerstoimplementbestpracticearoundflexibleworking.20Butfewotherprogrammeshavetended

toexplorethisaspectofjobdesign.21

Boosting employment through building local supply chains

Maximisingtheextenttowhichexistinglocalfirmsandpublicsectororganisationsbuygoodsandservices

fromlocalsuppliersiswidelyseenasanimportantwayofboostinglocalemployment.22TheCentreforLocal

EconomicStrategies(CLES),basedinManchester,hasbeenparticularlyactiveinthedevelopmentofthis

agenda,withrecentworkfocussingontheroleofanchorinstitutionsandtheirimpactonlocaleconomiesas

wellasskillsandeducationprogrammes.23

GreaterManchesterhasbeenattheforefrontofworkaroundsocialvalueandprocurement,bothbeforeand

afterthelegislationofthePublicServices(SocialValue)Act2012.

AbaselineanalysiscommissionedbyAGMAandconductedbytheCLESfoundthat84.8%ofthetotal

directspend(£1.003billion)byGreaterManchesterauthoritieswiththeirtop300suppliersbyvalueiswith

organisationsbasedin,orwithabranchinGreaterManchester;thisequatesto£851million.These300

supplierscreatedanestimated6,756jobsinGreaterManchesterinthelastyearincluding1,640forhardto

reachgroups,aswellas1413apprenticeships.ManchesterCityCouncilisalsoregardedasaparticularlygood

examplewhichdemonstratesthepotentialpowerof‘bending’mainstreamspendinthisway.

Developing Local Supply Chains: Manchester City Council

ManchesterCityCouncilhasbeenworkingwiththeCLESsince2008usingthe‘LocalMultiplier3’(LM3)

methodtomonitorandincreasetheproportionofitsspendthatendsupinthelocaleconomy.LM3

wasdevelopedbytheNewEconomicsFoundation(NEF).Itcalculatesthevalueofcontractsbetween

thelocalauthorityandlocally-basedsuppliersandthesumsspentonsalariesandwagesofdirect

employeeswholiveinthelocalauthorityarea.Italsoestimatesthere-spendoflocalsuppliersontheir

ownlocalsuppliersandthere-spendofdirectemployeesupongoodsandservicesinthelocaleconomy.

Armedwiththisinformation,ManchesterCityCouncilhasbeenabletoincreasetheproportionofits

directprocurementspendinthelocaleconomyfrom51.55%in2008/9to68.9%in2014/15.

StrategiespursuedbytheCouncilhaveincluded:makingtheCouncil’sstrategicprioritiesprominent

inprocurementdocumentation;settingcriteriaaroundsocialvalueinprocurement;settingupa

crossdepartmentcommissioningandprocurementgroup;andestablishinganetworkofsuppliers.In

19Ray,K.,Sissons,P.,Jones,K.&Vegeris,S.(2014)Employment,payandpoverty:evidenceandpolicyreview.JosephRowntreeFoundation.20Timewise,GuidetotheTimewiseCouncilProgramme,http://timewise.co.uk/wp-content/uploads/2016/07/Guide_to_Timewise_Councils.pdf(accessed08/09/16)

21SeealsotheTimewiseprojectwithPetsatHome,fundedbytheUKCESFuturesProgrammehttps://www.gov.uk/government/publications/ukces-futures-programme-progression-pathways-in-hospitality-and-retail-competition-brief

22Ward,B.&Lewis,J.(2002)Pluggingtheleaks:makingthemostofeverypoundthatentersyourlocaleconomy,NewEconomicsFoundation23McInroy,N.(2016)Forgingagoodlocalsociety:tacklingpovertythroughalocaleconomicreset,CLESreportforWebbMemorialTrust

15

Tosupplementthis,in2014,theGreaterManchesterCombinedAuthority(GMCA)developedtheGreater

ManchesterSocialValueProcurementFramework.TheFrameworkwasdesignedtoservethedualpurposeof

providingacommonmeansthroughwhichthetenGreaterManchesterauthoritiescouldconsidersocialvalue

whencommissioningandprocuringpublicservices;andalsoasawayofdemonstratingtheimpactofspending

choicesonanongoingbasis.Theframeworkverymuchhas‘inclusivegrowth’goalsatitsheart,beingbased

aroundthesixoutcomesof:promotingemploymentandeconomicsustainability;raisingthelivingstandards

oflocalresidents;promotingparticipationandcitizenengagement,buildingcapacityandsustainabilityofthe

voluntaryandcommunitysector;promotingequityandfairness;andpromotingenvironmentalsustainability.

TheManchesterGrowthCompanyisworkingwiththeGMSocialValueNetworktohelpGMsmallandmedium

sizedenterprisestounderstandhowtheycanscorewellinrelationtoSocialValue,therebymakingthemmore

competitiveforpublicsectorcontracts.Theyalsothensupportfirmstodeliverontheircommitments.

However,morecanbedonethroughprocurementmechanisms.Someconsulteesfeltthatstrategiesshould

aimtodifferentiatebetweenfirmswithstronglinkstoGMandthosewithanofficeintheareabutwhomight

actuallybetakingmoneyoutofthearea,moreopportunitiescouldthenbedivertedtotheformer.Meanwhile,

theCentreforLocalEconomicStrategieshasrecommendedamongotherthingsthatalllocalauthorities

considersocialvalueasamatterofcourseinprocurement,andthattheyanalyseinfluenceableleakageout

oftheGMeconomy.Flowsofpublicspendingacrosstheconurbationmightalsobebetterunderstood–that

istosay(forexample)theextenttowhichspendingbyManchesterCityCouncilbenefitslocaleconomiesin

RochdaleorWigan.Thesamestrategiesmightalsobeextendedtootherorganisations,forexamplethosein

thehealthandhighereducationsectors,largebusinesses,theLocalEnterprisePartnership,andthosefunds

beingdevolvedthroughtheGreaterManchesterDevolutionDeal.

Examplesofthesewiderstrategiesdoexistelsewhere.ForexampleinPreston,theCityCouncilisworking

withotheranchorinstitutionstomaptheirtotalspendandtofollowthisupbyseekingoutexistinglocal

suppliersthatmightbeenabledtobidforcontractsandalsotodevelopnewsocialenterprisesandinparticular,

co-operatives,topluggapswheretherearenosuitableexistinglocalbusinesses.24Theaimistoincrease

theamountspentonnon-specialistgoodsandserviceslocally,wherespendingisnottiedupinlong-term

frameworkagreements,butalsotoengagelocalanchorinstitutionsinthinkingabouttheimpacttheycanhave

onthelocaleconomy.

Supplychainswerenottheonlyaspectoflocaleconomicdependenciesthatstakeholdersthoughtcouldbe

betterunderstoodandactedon.Respondentsarticulatedtheneedforamoresystematicunderstandingof

thewaysinwhichmoneyalreadyintheGMeconomycanbeputtoworkintheinterestsofreducingpoverty

andinequality.Therewerealsodiscussionsaboutthewaysinwhichhighvaluehousingandmixedcommunities

canbebeneficialindisadvantagedareasbygeneratingincreasedlocalspending(althoughtheymayalsohave

negativeeffects),andaboutotherwaysinwhichoutputgrowthcanbetranslatedintoreducingpoverty(such

aslocalinvestmentfunds,in-kindsupportforsmallfirmsandlocalcivilsocietyorganisations,andphilanthropy).

Therewerealsocallstosupportgreaterfinancialliteracyofresidents,particularlyinthecontextofpaydayloans

andsupportingcreditunions.

particular,theCouncilidentifiedbusinessesinthemostdeprived10%ofneighbourhoodsnationallyand

contactedthemtoidentifypossiblesupplieropportunities.TheCouncilhasalsobeenabletoinfluence

thebehaviourofthesupplychain,includingemphasisingfairpay,volunteeringandapprenticeships.

24Jackson,M.&McInroy,N.(2015)Creatingagoodlocaleconomy:theroleofanchorinstitutions,CLES

16

Thesewereallareaswhereexampleswerenotreadilyofferedandtheneedformoreevidenceandpiloting

wasidentified.OnepromisingrecentdevelopmentisacommitmentbyManchesterGrowthCompanyto

encourageandsupportcompaniesthathavereceivedbusinesssupporttoengageandcommitresourcesto

socialoutcomes–forexamplelinkingSMEswiththirdsectororganisationstopromoteemployeevolunteering

ortoprovideinkindsupportsuchasmockinterviewsandworkexperienceplacements.

The nature of economic development

Perhapsthemostchallengingaspectoftheinclusivegrowthagendaisworkingoutitsimplicationsfor

economicdevelopmentstrategies.IntheGMcontext,ourconsultationsuggeststhatthereiswiderecognition

ofthesuccess,intermsofGVAandemploymentgrowth,oftheeconomicstrategythecity-regionhas

pursuedsincetheIRAbombin1996andsincetheManchesterIndependentEconomicReview.Muchofthis

reportaddressesthechallengesofmakingthiskindofeconomyaninclusiveone–challengesoflowpayatthe

bottomendofthelabourmarket,insecurework,ensuringlocalpeoplehavetheskillstotakethejobsavailable,

andthathousingandtransportenablethemtoreachthem.

Butquestionswerealsoraisedaboutwhetherthecity-region’seconomicstrategypersecouldfostermore

inclusiveeconomicoutcomes.Anumberofrespondentsarticulateddemandsforamorediverseeconomic

strategy,emphasisingmorethekindsofeconomicdevelopmentthatcouldbringbetterpaidandmoresecure

jobsnotjusthighvolumesofjobs,andstrategiestoenablethebottom-updevelopmentoflocaleconomies,

especiallyinareaswhereresidentshavenotbenefitedsubstantiallyfromtheexistingmajorinvestmentsand

growthhubs.Somepeoplearguedthatwithoutthisbroaderstrategicapproach,theGMeconomywillcontinue

todeliverunequaloutcomes.

Theargumentsherewerebroadlyoffourkinds.Someweremorecommonlymentionedandmorefully

developedthanothersinthisconsultation.

Onesetofsuggestionswasaroundfosteringpossiblyslowerorlowergrowingsectorsbutoneswithpotential

toofferbetterpayingjobsandgreateropportunitiesforprogression,andtoconstructlocalvaluechainsin

thesesectors.Inthiswork,specificsuggestionsorstrategieswerenotoffered–ratherthiswassuggested

asanareaforfurtherinvestigationandanalysis.Similarly,asecondsuggestionwasaroundtheneedtobetter

understandandexplorethepotentialforsmallspecialistclustersoutsidethemaingrowthhubs,inorderto

bringhighervalueemploymenttomoreeconomicallymarginalisedareasoftheconurbation,supportedby

strategiesofsupplychaindevelopment,specialisedtraining,andemployerlinkswithschoolsandcolleges.

Athirdsetofsuggestionswasaroundthemoreextensivepromotionofalternativemodelsofeconomic

organisation,inwhichthevaluegeneratedismorelikelytoremaininthelocalareathantobeextractedbynon-

localshareholders,andislikelytobemoreevenlydistributedwithinfirms/organisations.Thiscouldinclude:

■ Deliveryofpublicservicesanddevelopmentofnewcommunity-basedfacilitiesandservicesbynon-profit

‘socialenterprises’;

■ Broaderpromotionofdifferentkindsofbusinessmodelsuchasco-operativesandmutuals.Social

enterprisesoftenhavetheseformsoforganisationbuttheycanalsoexistinothersectors–notablyin

retail.Severalrespondentsremarkedthatsuchformsofeconomicdevelopmentareinthe‘DNA’ofGreater

Manchester,thehomeoftheco-operativemovement.

Inthisconsultation,moreinformationwasofferedaboutsocialenterprises.Socialenterprisesarebytheir

naturemorelikelytodistributethebenefitsofgrowththanprofit-motivatedbusinessessincetheirobjectives

areprimarilysocialandtheirsurplusesareprincipallyreinvestedforthatpurpose.Inotherwaystheyarealso

17

morelikelytobe‘inclusive’:theyareapproximatelytwiceaslikelyasotherbusinessestobeledbywomen,

disabledpeopleorpeoplefromblackandminorityethnicgroups,andaremorelikelytobelocatedinthemost

deprivedareasofthecountry–38%workinthemostdeprived20%ofcommunitiesintheUK,comparedwith

12%oftraditionalSMEs.25

Supportforsocialenterpriseisdeveloping.Inparticular,inFebruary2015,SocialEnterpriseUKdesignated

SalfordasaSocialEnterprisePlace.The‘Social Enterprise City’issupportedbySalfordCVSwhichisaprominentmemberofGreaterManchester’sSocialValuenetworkandSalfordUniversitywhichrecently

launchedaCentreforSocialBusiness.OtheralliesincludesocialhousingproviderssuchasCityWest,thecity

mayorandSalfordCouncil,aswellastheBusinessGroupSalford,anetworkoflocalenterpriseswhichunusually

hasmanagedexternallyfundedprogrammestosupportenterprisedevelopmentamongstbothlocalresidents

andnewEUmigrantsinlowincomecommunitieswithinthecity.

Aworkshopwith(mainly)thirdsectororganisationsworkingonlocaleconomicissuesalsoidentifiedgoodlocal

examplesofsupportforsocialenterprise.OneofthesewastheCheekyMonkeysFamilyCentreinSale26–a

childcareproviderandfacilitywhichcanbehiredforchildren’spartiesattheweekends.Ourattentionwasdrawnto

thisasanexampleofthefactthatsuccessfullyestablishingasocialenterprisecanrequirethesupport(andstart-

upfunding)ofseveraldifferentpartners,aprocesswhichcanbedifficulttonavigateandcoordinate.Inthiscase,

TraffordHousingTrust’sDevelopmentManagernominatedtheprojectfortheTrust’s‘giveandgain’dayswhere

theirstaff(includingskilledtradespeople)workedalongsidelocalpeopletorewireandredecoratethedilapidated

buildingandalsohelpedthemraisefundstoequipitwithfurnitureandtoys.Socialenterprisesupportorganisation

Unltdprovidedresource,trainingandsupporttoestablishaCommunityInterestCompanyandsocialenterprise.27

FurthercapacitybuildingsupportwasaccessedfromTraffordHousingTrust’scapacitybuildingteamtohelpwith

businessplanningandaccessCSRsupportfromtheTrust’ssupplychain.Whiletheworkshopparticipantswere

abletociteothersuccessesofthiskind,theyalsoarguedthatsocialenterprisesupportinGreaterManchesterat

presentis‘unfocused’and‘patchy’andneedsmorestrategicdirection.

ResearchonsocialenterprisedevelopmentintheUKandlocallysuggeststhatwhiletheobstaclestosuccess

forsocialenterprisesaresimilartothoseforSMEsgenerally,theyaremorelikelythanaveragetofindobtaining

financeanobstacle,eventhoughthelevelsthattheyrequirearelowerthanforSMEsoverall.Nationally,39%

citedobtaininggrantfundingasabarriertotheirsustainability–themostcommonbarrierexperienced.28

Anotherprincipalbarriertothegrowthandsustainabilityofsocialenterprisesispublicprocurement

policy(contractsize,capacity,accessandpaymentmodels).Justunderhalf(49%)ofsocialenterprises

workingmainlywiththepublicsectorreportedthattheSocialValueActwasyettobeimplementedinthe

commissioningprocess.Inaddition,theotherkeybarriersforsocialenterprisesinGreaterManchesterare:

accessingsupport;lackofcapacity;businessskillsandpractices;andnetworkingopportunities.29

Finally,afourthandlinkedsetofsuggestionswasaboutwhatcouldbedonetosupportenterpriseand

smallbusinessgrowth(inthefor-profitsectornotjustinorganisationswithsocialpurposes),thusbuilding

sustainablelocaleconomiesfromthebottomupratherthanrelyingonmajorfirmsandprojects.

Respondentsrecognisedthatthiskindofeconomicdevelopmentcanbecomplex,messyandrisky,andthat

itsgainsarenecessarilymoreincrementalthanlargescaleinwardinvestments.Accesstofinanceisoften

reportedasabarrier,butmultipleformsofsupportmaybenecessary,someofwhichmaybeverysmallscale.

25SocialEnterpriseUK(2013)StateofSocialEnterprise2013;Theproportionfellto31%inthe2015survey.26http://4cheekymonkeys.co.uk/about.html27NotesfromGMCVOworkshop,27May2016.28SocialEnterpriseUK(2015)StateofSocialEnterprise201529Dabbs,C.(2015),SocialEnterprise–summary,Salford:UnlimitedPotential

18

BananaEnterpriseNetwork(seebox)wasoneexampleofasuccessfulandgrowinglocalmodel.Wewerealso

toldabouttheLiverpoolEnterpriseHub–anoverarchingbrandmadeupof11deliverypartnerstosupport

self-employmentthroughoutLiverpoolCity-region,andonasmallerscale,abouttheexampleofCalderdale

Council,whichhadchangeditsbusinessgrantschemetoclassifyhome-workersaseligiblebusinesses.

Respondentsalsoarguedthatamorestrategicapproachtofosteringacultureofentrepreneurshipwas

needed,withmainstreameducationandskillsprogrammesbeingdesignedtoofferinsightsintotherealitiesof

bothentrepreneurshipandemployment.

Supporting Local Enterprise

Banana Enterprise Network(BEN)isaSalfordbasedsocialenterprisesetupinresponsetoanidentifiedneedforgrassrootspreself-employmentsupportandtrainingforpeople.BENprovidesan

opportunityforpeoplewhoareunemployedorlowwagedandinterestedinself-employmenttobuild

uptheirskillswhilstfindingoutwhatisinvolvedinrunningtheirownbusiness.Theycanthenmakean

informeddecisionaboutwhetherself-employmentcouldbeaviableoptiontohelpgetthemback

into,orprogressatwork.BENiscurrentlyfundedtoworkinBoltonandSalford,wheretheyprovide

one-to-onementoringandtrainingcoursesinthekeyskillsnecessaryforrunningyourownbusiness,

includingpersonaldevelopmentandconfidencebuilding.BENbuildspartnershipswithlocalgrassroots

organisationsincludingcommunitycentres,sociallandlordsandjobclubs.Theyalsotakereferralsfrom

theJobcentre.In2015(thecharity’sfirstyearoftrading),BENsupported291people.In2016theyare

forecastingthattheywillsupportover500.Theproject’sfounderidentifiedthefollowingreasonsforthe

organisation’ssuccess:

■ Tailoredpackagesofsupport,builtaroundtheneedsofeachindividualandprogressingattheirown

pace;nopre-settargetsortimelimitedgoals;

■ Skilledtrainerswithexpertiseinbusinessstart-up,marketingandfinance,complementedby

additionalone-to-onesupporttobuildconfidence,personaldevelopmentskillsandresilience;

■ ‘Growyourown’:onprinciple,BENonlyemploystrainersandmentorswhohavesetupabusiness

themselves,givingthemarealunderstandingofthechallengesfacingtheirclients;

■ Buildinganetworkofsupport,basedonlocalcommunityorganisationsandserviceprovidersandalso

othernewentrepreneurswithinthesameneighbourhood.

Theideasofferedinthisconsultationinevitablyfallfarshortofastrategicapproach.Thekeypointwas

thatrespondentsthoughtamorestrategicapproachcouldbetakentosupportinglocalinvestmentas

wellaswhatonecontributordescribedasthe‘big economics’atwhichGreaterManchesterhadbeen

demonstrablysuccessful.

19Including more people in economic opportunity

Learning and skills

Long-termchangesinthestructureofthelabourmarket,andgrowthinflexibleformsofworkovertheshort-

termposeanumberofchallengesforresidentsofGreaterManchester.Whiletheproportionofpeoplewithno

qualificationshasfallensignificantlyoverthecourseofadecade,therearestill180,000working-agepeople

whohavenoqualifications.30

Changesinthetypesofjobsonoffercouldalsopresentachallengetopeoplewithlimitedexperience,or

specialistskillsthatmaynotbeindemand.Whileitisestimatedthattherewillbegrowthinjobsinsectors

suchasfinancialandprofessionalservices,theskillsandexperiencerequiredtoaccessthesejobsmaydiffer

fromthoserequiredforjobsinmanufacturing,asectorwheredemandispredictedtofallby2022.31Raising

skilllevelsforresidentsandprovidingsupportto(re-)enterthelabourmarketwillbekeyinfacilitatingbroader

participationintheopportunitiespresentedthrougheconomicgrowthincomingyears.Thisisparticularly

importantsinceresidentswithlowerskillsarenotdistributedevenlyacrossthecity-region,withconcentrations

inOldham,RochdaleandManchester.32

Unliketheissuesdiscussedintheprevioussection,whichwereaboutshapingtheeconomyandthebehaviour

ofprivatefirmsandlargeemployers(andnotwithstandingthefrequentlyarticulatedneedforanemployer-led

system),influencinglearningandskillsislargelyseenasapublicsectorresponsibilityintheUK.Consultation

responses,wheretheyaddressedthisissue,highlightedsomeoftheacknowledgedproblems33 with the

systemascurrentlyconfigured,including:

■ Largescalecutsinadultlearningfundssince2010;

■ Acomplexlandscapeofprovisionwithmultiplequalificationsandproviders,whichaffectsbothentry

andprogression;

■ Lackofhighqualityandwellregardedvocationalprogrammesforyoungadultsthatoffertransitionroutes

fromschooltoworkthatareassecureasthoseavailabletoyoungpeoplepursuingacademicoptions;

30IGAU(2016)InclusiveGrowth:OpportunitiesandchallengesforGreaterManchester31NewEconomy(2016)GreaterManchesterSkillsAnalysis2015/201632AccordingtotheAnnualPopulationSurvey,48%ofGMresidentswithnoqualificationswereintheseareas.ForfurtheranalysisofskilllevelsinGMsee IGAU(2016)InclusiveGrowth:OpportunitiesandchallengesforGreaterManchester,pp20-21

33Lupton,R.,Unwin,L.&Thomson,S.(2016)TheCoalition’sRecordonFurtherandHigherEducationandSkills:policy,spendingandoutcomes2010-2015.SocialPolicyinaColdClimatepaper,CASE

20

■ Aweakapprenticeshipsystem,withmanyapprenticeshipsbeingtakenbyadultsand/orbeing‘conversions’

fromexistingjobs;

■ Fragmentedandunderfundedadviceandguidanceservices;

■ Incoherenceofgovernancearrangements,inparticularthedevelopmentofasystemofautonomous

schoolswithnomechanismsforlocalaccountabilityorcoordinationwithotherpartsofthelocallearning

andskillssystem.

GreaterManchester’sstrategiestodatehaverecognisedthecentralimportanceoflearningandskillstothe

developmentoftheGMeconomyandthatdevolutionoffers,inmanyrespects,theopportunitytodevelopa

localskills‘ecosystem’,offeringlinksandprogressionacrossagesandphases.

Inparticular,anambitioussetofreformstoearlyyearsserviceshavebeenproposedasapartofGMCA’s

growthandreformplan(2014),withfurtherdetailcominginthesubsequentHealthandSocialCarestrategic

plan(2015).Theaimistoimproveperformanceacrossarangeofindicators.Schoolreadinessindicatorsfor

GreaterManchester,forexample,arelowerthanthenationalaverage–almosttwoineveryfivechildrendo

notreachagoodlevelofdevelopmentatagefiveyears,increasingtooneineverytwochildreninreceiptof

freeschoolmeals.Thereformsaimtooffera‘newdeliverymodelforearlyyears’whichwillensureaholistic

approachtoimprovingschoolreadinessthroughintegrationofpublicservicesforparentsandchildren,

investinginevidence-basedinterventionsanddecommissioningthosewithapoorevidencebase,targeting

supportonthosemostinneed,workforcedevelopment,andimprovementsindatacollectionandsharing.34

Theplanisforaninitialphaseoftestingandpiloting,buildinguptheevidencebaseforinterventionsand

changestoservicedelivery.Thiswouldthenleadtostagedimplementationacrosstheregion,buildingupto

allchildrenunder5overtheperiod2015/16and2018/19.Arecentupdate35notedthatsomeareashavenow

implementedthemodelinpilotareas,orhaveundertakenborough-widerolloutofsomeinterventions,butno

councilhasyetfullyimplementedthevision.

Othercurrentactivitiesincludeon-goingworkonthedesignanddeliveryoffurtherandadulteducation

followingtherecentAreaReviewofFEcolleges36andthedevelopmentofastrategicplanforCareers

Education,Information,AdviceandGuidanceacrosstheconurbation,thelattersitswithintheRaisingthe

ParticipationAgeStrategy.Mostofthesereformsareunderpinnedbyacommonsetofgoals,aimingtoensure

thatthesystemismoreresponsivetoemployerneedsandeconomicprioritiesandthatthereareclearroutes

fromcoursesintoacademicandlabourmarketcareers.

Ourconsultationexerciseandinterviewshighlightedsimilarconcernsandanumberofchallengesthat

wouldneedtobeaddressedtoensurethatskills,educationandtrainingprogrammeswereenablingwider

participationintheopportunitiesonoffer.

Anumberofintervieweeswereconcernedthatmaintainingfundingforholistictrainingprogrammestargeted

atlow-skilledgroups,andforwiderengagementefforts,couldprovechallenginginthecontextofapartially

devolvedbutdiminishingAdultSkillsBudget.37Asoneintervieweeputit,itisclearlynecessarytofocuson

advancedvocationaltrainingbut“people have to get there”andcan’tjustjumpfromhavinglowskillstoachieving

aLevel3qualification.Therewasalsoconcernthattheconsolidationofskillsfundingandthatthemoveto

34GrowthandReformPlan(2014)35StartWellEarlyYearsStrategy(2016)http://www.gmhsc.org.uk/assets/6a-Start-Well-Early-Years-Strategy.pdfGreaterManchesterDevolutionImplementationPlan(April2016)

36GMCA(2016)GreaterManchesterAreaBasedReview:OptionRecommendation:PartA;HMGovernment(2015)Reviewingpost-16EducationandTrainingInstitutions;https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/446516/BIS-15-433-reviewing-post-16-education-policy.pdf

37ProvisionalanalysisbyNewEconomy,referencedinpresentationavailableathttp://www.gmlpn.co.uk/resources/Productivity%20and%20Skills%20Conference%20Slides.pdf

21

commissioningatGMCAratherthanlocalauthority-levelwouldreduceflexibilityandpotentiallyleadtotheloss

ofvaluedlocalprogrammes.IntervieweesalsoexpressedconcernthattheconsolidationoftheCommunity

LearningFundintothesingleskillsfundingpotwouldleadtoresourcebeingdirectedawayfromcommunity-

basedoutreachprojectstoprojectsthataremoreexplicitlytargetingemploymententry.

Asecondissueraisedwastheneedforin-workskillsdevelopment.Whiletherewereconcernsaboutschool

careeradviceandguidanceservices,intervieweesalsohighlightedgapsinadultprovision,andfunding,

particularlywithregardtopeoplewhohavemovedintoworkwhomaybenefitfromindependentadvice

tohelpthemtoprogressonceinwork.Withthisinmind,OldhamCounciliscurrentlytriallinganewcareer

advancementserviceforpeopleinlowwagework).

Oldham Career Advancement Service

Adultcareersadviceservicestendtobetargetedatpeoplewhoarelookingforemployment,ratherthan

thosepeoplewhoarealreadyinemploymentbutwhomightbeonlowpayorinworkthatisill-suitedto

theirinterestsorskills.In2016OldhamCouncilsetupapilotCareerAdvancementServicewiththeinitial

aimofsupportingover400residentswhoarealreadyinworktoprogressfromlowpaid,lowskilljobs.

TheOldhamWorkandSkillsStrategy38makesthecasethatbysupportingthesegoalstheymayhelpto

increaseproductivitylevelslocally.

ThepilotdrawsonfundingfromtheAdultSkillsBudget,EuropeanSocialFunds,AdvancedLearner

LoansresourcesandaninitialinvestmentfromtheCouncil.Inpractice,itwillactasanextensiontothe

‘GetOldhamWorking’programme,enablingcontinuedsupporttobeofferedtopeoplewhomoveinto

workthroughtheprogramme.Theideaisthatparticipantswithlowskillswillbeofferedintensivecareer

coachingandapersonalbudgettoenablethemtoputtogetherapersonalisedpackageofsupportto

enableprogression.

Progressionoutcomeswillbemeasuredintermsofthenumberofpeoplethatseeemployment

progression(measurablepay/wageincreases)aswellasprogressiontoadvancedorhigherlevel

qualifications.Therationaleforfocussingonachievinghigherqualificationsaswellasemployment

progressionisthathigherqualificationsmayactasa‘proxyforemployabilityandsalaryprogression’.

Thepilotisintheprocessofbeingsetupandsoitisnotyetpossibletoreviewoutcomesortoassess

thesuccessofthisinitiative.However,ithasthepotentialtodevelopanewmodelforadultcareers

adviceservices,offeringinsightsforpolicymakersacrossthecity-regionandintherestoftheUK.

Lackofemployerengagementanduncertaintyaboutthequalityofthequalificationsonofferweretwoissues

identifiedbyinterviewees.Bothcanmakeitdifficultforlearnerstoidentifycoursesthatwillimprovetheir

employmentprospects.Localcommissioningisseenasonemeansofenablinggreaterresponsiveness,

alongsideemployerengagementandtherolloutofapprenticeships.OneareainwhichGreaterManchester

istriallinganewapproachtoemployerengagementisthroughchangestotheeligibilitycriteriaforthe

ApprenticeshipGrantforEmployers(AGE).Thenationalschemeaimstoencouragemoresmallbusinesses

totakeonanapprentice,recognisingthatsmalleremployerscanstruggletoengagewithskillsprogrammes

andofferdevelopmentopportunities.39TheschemehasbeenadaptedinGreaterManchestertoensurethata

38OldhamCouncil(2016)OldhamWorkandSkillsStrategy2016-20:FinalDraft39FSB(2016)Makeorbreak:gettingapprenticeshipreformrightforsmallbusinesses

22

widerrangeofemployerscantakeadvantageoftheschemeandthatitencouragesprogressiontohigherlevel

apprenticeships.However,usingapprenticeshipfundingstrategicallytodevelopemploymentopportunities

foryoungpeopleinparticularlydisadvantagedareasbyworkingwithlocallybasedfirmswasmentionedasan

avenueforfurtherdevelopment.

InJune2016,theManchesterGrowthCompanyalsooutlinedanewsetofservicesaimedatprovidingSMEs

withadviceandsupportaroundworkforcedevelopment,includingforexample,wheretheremightbebusiness

benefitstocreatingHigherLevelApprenticeshipsratherthanrecruitinggraduates,workingwithschoolsto

ensureapipelineofpotentialemployeesandrecognisingtheproductivitygainsofupskillingtheleadershipand

managementcapabilitiesoftheircurrentworkforce.

Apprenticeship Grant for Employers, Greater Manchester

TheApprenticeshipGrantforEmployersoffersincentivestosmallbusinesseswhohireayoung

apprentice(aged16-24).Anumberofeligibilitycriteriaapplyandtheseandtheoverallsizeofthe

incentivedifferbetweenareas.40Theoverallaimofthegrantistoincreasethenumberofsmall

businessesthatofferapprenticeships;asaresult,thegrantistargetedatemployersthathavenothired

anapprenticeinthelastyear.Nationally,ithasbeenconfirmedthatthegrantswillcontinuetotheendof

the2016/17academicyear,offeringtransitionalsupportasotherapprenticeshipfundingreformsare

putinplace.

TheGreaterManchesterschemeoffersa£1,500granttoemployerswithfewerthan250employees

whotakeonayoungapprentice,withanadditional£1,000availablewheretheyoungpersonprogresses

fromatraineeshipontoanapprenticeship,orwhereanemployeroffersaHigherApprenticeship.41Itis

alsoproposedthatincentivesareofferedtoemployersandprovidersdeliveringTrailblazerStandards.

InTamesidethelocalauthorityhasintroducedadditionalincentives.TheTamesideBusinessGrant

(2015/16)isworthupto£1,500andisavailabletosmallemployerswhocreategoodnewjobsatthe

LivingWageandwhoadoptgoodbusinessandemploymentpractices,ortosmallemployerswhotake

onalocalapprentice.ThegrantcanbeclaimedalongsidetheGMAGEscheme.

40HouseofCommonsLibrary(2016)ApprenticeshipsPolicy,England:briefingpaper,http://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN03052(accessed26/08/2016)

41GMAGEEmployerFactSheetfrom1stApril2016

Finally,someintervieweescommentedonthetensionsbetweengovernanceandaccountabilityarrangements

intheschoolsystemandthegoalofalocalskillsecosystem.Increasedautonomyandcompetitioninthe

schoolsystem,withafocusonGCSEperformanceandanincreasedfocusonacademicsubjectsmakesit

hardertodevelopandimplementalocaloffertoyoungpeoplewithhighqualityvocationaloptionsandavariety

ofroutestoengagewithandsucceedatlearninginthesecondaryyears.Currentpolicyrequirementsthat

youngpeoplewhohavenotachievedtheexpectedlevelatEnglishandmathsbyage16mustcontinuethese

studiesincollegearedivertingsubstantialresourcesintheFEsystemtoMathsandEnglishGCSEcourses,

withgenerallylowsuccessratesandnoimplicationsforschoolbudgets.Whileweweretoldaboutpromising

examplesofcollaborativeworkingbetweenschoolsandcolleges,therewerealsodemandsforpolicychangeat

nationallevelinthe14-19phase.

23

Connecting people and jobs

LevelsofeconomicinactivityarehighinGreaterManchestercomparedtoothercity-regionsandemployment

ratesdipaslowas62.8%inManchester,64.6%inRochdaleand64.8%inOldhamalliedtohighratesofillhealth

anddisability.42Thereisalargeevidencebaseonsupportingpeopleintoemploymenttodrawoninensuringthat

theopportunitiesandjobsthatarebeingcreatedinGreaterManchesterareaccessible,43thoughtheindividualised

supportrequiredtosupportthosewithhealthconditionsintoemploymentisnotconsistentlyavailable.

Forthosethatarefurthestfromthelabourmarket–includingpeoplewhohavebeenoutofworkforyearsdue

tohealthproblems,orlackofopportunity–intervieweesemphasisedtheneedforsupporttobeintensive,and

availableoverthelong-term.TheNuTraxxConnectprogramme,partoftheYouthContractextension,was

anexampleofaprogrammethatwasseekingtosupportsustainableemploymentoutcomesbycontinuingto

supportyoungpeopleduringthefirstfewmonthsofemployment.whohavemovedintowork.

Meanwhile,throughdevelopmentoftheWorkingWellprogrammeGreaterManchesterisseenasleadingthe

wayinbreakingdownthebarrierstoemploymentfacedbythosegroupsthathavenotbeenservedwellbythe

WorkProgrammeandotheremployabilitysupportservices.TheWorkingWellprogrammeisbeingdeveloped

bytheGMCA,withfundingfromtheDWP.FollowingasuccessfulpilotsupportingESAclaimantsexitingthe

WorkProgramme,WorkingWellhasbeenexpandedtoenablesupporttobeofferedtoawiderrangeof

claimants,withreferralsmadebyJCPWorkCoachesandGPs.Theservicealsooffersadditionalservices

tosupportclientswithbarriersrelatingtomentalhealthandlowskills,reflectingthefindingthattheseare

amongstthemainbarrierstoworkexperiencedbyclients.44Anearlylessonfromthepilotwastheimportance

ofthekeyworkerrelationship45–ratiosofparticipantstostaffaremuchlowerthanintheWorkProgramme.

Integrationboardsinlocalauthoritieshaveplayedanimportantroleinenablingsequencedaccesstothe

servicesneeded.Theaimisfortheprogrammetoengageatotalof50,000people.

Inaddition,anumberofwell-developedprogrammesrunbycharitiesandthirdsectororganisationshave

emphasisedtheimportanceofbuildingrelationshipsbetweenparticipantsandsupportstaffandofdeveloping

stronglocalnetworks.Thesesmall,tailoredprogrammescanoperatemoreinformallyandarethoughtto

enablethedevelopmentofsupportiverelationshipsthatwouldnothavebeenpossibleinthecontextofamore

formalprogramme.Someexamplesareoutlinedbelow.However,intervieweesalsoraisedconcernsthatthere

werestillgroupsthatwerefallingthroughthegaps,includingrefugeeswhomaybefarfromemploymentready

butwhoarenotgenerallyofferedsupport.

42AnnualPopulationSurvey,16-64employmentrates.ForfurtherdiscussionseeIGAU(2016)InclusiveGrowth:opportunitiesandchallengesfor GreaterManchester

43Green,A.,Sissons,P.,Broughton,K.,deHoyos,M.,Warhurst,C.&Barnes,S.(2015)Howcitiescanconnectpeopleinpovertywithjobs,JRF44ManchesterCityCouncil(2016)WorkingWellUpdate:EconomyScrutinyCommittee45Basedontheinterimevaluationdrawingoninterviewsandfocusgroupswithclients,stakeholdersandstaff.Dickinson,S.(2015)InterimEvaluationofWorkingWell:reporttoBigLifeEnterprisesbyScottDickinsonLtdhttps://www.thebiglifegroup.com/wp-content/uploads/2015/08/Big-Life-Working-Well-Interim-Evaluation-Final-Draft-for-Circulation-13-07-2015.pdf

Talent Match

Greater Manchester Talent MatchisaBigLottery-fundedprogrammethatsupportsyoungpeople

(18-24yearolds)whoarenotineducation,employmentortrainingandhavesignificantbarriers,to

developtowardsandintoemployment.Thisinvolvesa‘TalentCoach’(keyworker)buildingarelationship

24

Employerengagementandunderstandingtheneedsbothofemployersandpotentialemployeesemergeas

importantintheseexamples.Severalprojectsengagedirectlywithemployerstoidentifytheirrecruitmentand

trainingneedswithaviewtosupportinglocalresidentstoapplyforopportunities.TheWorks,forexample,is

runbytheUniversityofManchesterandworkswithmajoremployerstomatchlocalresidentstoupcoming

vacancies,offeringtrainingwhereappropriate.Meanwhile,theWorkersEducationalAssociationhasdeveloped

aspecialisttrainingprogrammetosupportpeopletoaccessemploymentopportunitiesatManchesterAirport.

Thestrengthoftheseprojects,outlinedinmoredetailbelow,isthattheysetouttopreparelocalresidentsto

applyforactualvacancies.

withandsupportingtheyoungperson,toenablethemtoidentifytheirbarrier/stoemploymentand

provideholisticsupporttohelpthemtoovercomethis.

Theprogrammediffersfromotheryouthemploymentschemesasittakesapredominantly

community-basedapproachtoidentifyandsupporthardtoreachyoungpeople,anddesignapackage

ofsupportthatwillsuitthem.Toensuretheprogrammefitstheneedsofthisgroup,theprogramme

hostsaYouthPanelwhichisinvolvedinthegovernanceanddesignoftheprogrammeacrossalllevels.

Bymid-2016nearly1,000youngpeoplefromacrossGreaterManchesterhadbeenengagedandnearly

250hadenteredemployment.Keyfactorsintheprogramme’ssuccessincludeitsmodelofworking

withcommunity-basedorganisationstoreachoutto‘hidden’youngpeoplewhowouldnottraditionally

engagewithservices;providinglongterm,one-to-oneholisticsupporttoyoungpeoplewithmultiple

barrierstoemployment,andsupportingyoungpeopletorealiseandbuildontheirtalentstoensure

sustainedemployment.

Bybringingtogetherpartnershipsofemployers,educationproviders,andthird-sectororganisations,

GreaterManchesterTalentMatchalsoaimstoboostopportunitiesforyoungpeopleineachareaand

developnewpathwaystoemployment.AnOpportunitiesHubhasbeencreatedforthispurpose.Thisis

anonlineportalthatbringstogetherinformationaboutexistingopportunitiesavailabletoyoungpeople

inGreaterManchester.

NEETs plus project

TheBroughtonTrustrunsadultlearning,youthwork,employmentsupportandcommunity

developmentprojectswithlocalresidents.TheTrustisrootedinthelocalcommunity:mostofits

staffandvolunteersliveinEastSalfordandtheTrustisrunbyamanagementboardwithamajority

oflocalresidents.ItalsohasstronglocalnetworksandcanworkwiththeCouncil,localagenciesand

employmentstofindopportunitiesforyoungpeople.

InrecentyearsithasrunaNEETs-Plusproject,workingwithyoungpeoplewhoarenotengagingin

education,employmentortraining,andwhohavestoppedclaimingbenefits.Thisisagroupthatoften

fallsthroughthegapsinmainstreamemploymentsupport.TheTrustaimstoengageyoungpeople,

buildingtrustingrelationshipswiththemandworkingwiththemattheirownpace,tosupportthem

astheyseekwaystomoveforwardintheirlives.Thementoringprocesscontinuesastheytransition

fromschooltocollege,andcollegetowork;thetrustalsobrokersopportunitieswithemployers,andis

committedtocontinuingtosupporttheyoungpeopleforaslongastheyneed,notjustuntilthemoney

runsout.46

46InputfromBroughtonTrustworkeratIGAUeventatGMCVOinManchesteron27May2016.

25

Engagingemployerscouldbedifficultwheretheysawtheactivityasanother‘publicsectorfad’.Forthisreason

itwassuggestedthatanorganisationoutsidethepublicsector,suchastheChamberofCommerce,shouldbe

fundedtoplayakeyroleincoordinatingbusinesssupportandengagement.WiganWorkswasanotherproject

thatwastargetinglocalbusinessesdirectly.Thedigitalportalaimstoprovidebusinesseswithanoverviewof

thebenefitsofworkingintheareaandsignpoststhemtolocalbusinesssupportservices,recognisingthat

theyareoftenlookingforasimpleandaccessibleroutetofindoutaboutlocalinitiativesandgrants.

Whileitwasrecognisedthatmajorinvestmentprojectsinthepasthadnotalwaysbeenmanagedin

wayswhichmaximisedlocalemploymentbenefits,itwasseenas‘easier’forlocalauthoritiesandother

organisationstoputschemesinplacearoundthesekindsofdevelopments.Lesseasywasmakingsure

thatlocalresidentsbenefitedfromregularsmallscalevacancyopportunities,andensuringstaffretention

intimesofretrenchment.Inrelationtotheformer,participantsattheGMCVOworkshoponlocaleconomic

developmenttalkedabouttheneedforculturechangeamongemployersaswellasco-producing

employmentschemeswithlocalpeople.Yetforsmallbusinessesinparticular,thetimeandresourcestaken

toworkwithpeoplewhohavelowskillsandlittleworkexperiencecanbeachallenge,makingiteasiertopick

the‘lowhangingfruit’.

The Works

TheWorksisaone-stop-shoprunbytheUniversityofManchesterinpartnershipwiththeManchester

GrowthCompanytosupportlocalpeopletofindjobs,developskillsandaccesstraining.Thescheme

wasoriginallysetuptoincreasethenumberoflocalresidentsworkingattheUniversity,butnowalso

supportsseveralothermajoremployersincludingGreaterManchesterPoliceandhousingassociations.

Over3000peoplehavebeenplacedintojobssofarofwhichthree-quartersarefromManchester’s

centralwards.Overthenexteightyears,constructionprojectslinkedtotheUniversity’scampus

redevelopmentareexpectedtodeliveraround1000jobsandwillbeamajorfocusforTheWorks.

AspireRecruitment,anon-profitpartoftheManchesterGrowthCompany(MGC),matchespeopleto

upcomingvacanciesandTheWorksprovidessupportincludingCVwriting,andjobinterviewtrainingas

wellasgenericandjob-specifictraining–includingacateringacademy,ITtrainingandaconstruction

skillsacademy.FundingfortheprojectcomesfromMGCandtheUniversity(intheformofsalariesand

facilities)andcoursesarefundedthroughtheAdultsSkillsBudgetamongothersources.Theproject’s

directorreportsthatthekeytothesuccessoftheschemeisthatittrainspeopleforrealvacancies,thus

ensuringamuchhigherrateofsuccessthanistypicallythecase.

Chinese Cultural Awareness

TheWorkers’EducationalAssociationranaseriesofshortcoursesin2015inChinesecultural

awarenessandbasiclanguageskillsforlocalpeopleinWythenshaweandothersurroundingareaswho

werelookingforworkatManchesterairport.Thecoursesformedpartofathreeweekemployabilityand

basicskillscoursedeliveredbyStockportcollegefortheManchesterAirportAcademyProjectaspartof

theairport’scommunityengagementprogramme.47

47http://www.manchesterairport.co.uk/community/working-in-our-community/airport-academy/

26

Enabling travel across Greater Manchester

■ ‘LocalLink’servicesfillgapsinbusserviceprovisionbyofferingsubsidisedsharedtaxiserviceswhere

privatebusoperatorsarenotcoveringroutesandsupportedbusserviceswouldnotbeeconomicalfor

TransportforGreaterManchestertoprovide.InsomeareastheLocalLinkserviceshaveanemployment

focus,withextendedoperatinghourstoallowfor,asanexample,earlymorningshiftspatterns

■ TransportforGreaterManchester,part-fundedbytheDepartmentforTransportandsupported

bybusoperators,offerfreedaybusticketstojobseekerswhoareattendinganinterview,afree28

daytravelpassforbusandMetrolinkservicesforthosewhomoveintoworkandthenadiscounted

travelpassforupto12weeksprovidedthattheyremaininwork.Theaimoftheschemeistosupport

peopletoaccessemploymentandtoreducelivingcostsaspeoplemoveintowork.JobcentrePlus

advisorsaregatekeepersfortheschemeandTfGMofferstrainingontransportroutesandfaresso

thatadvisorscanofferadvicetoclaimantsonwaystoaccesswork

WhilethereisalotofactivityunderwayaimingtosupportmorepeopleintoemploymentinGM,someof

ourintervieweesraisedconcernthattherewasalackofunderstandingofspecificbarriersthatmaybe

affectingpeoplefromminorityethnicgroups.Itwasnotclearwhethertheinclusionofmarginalisedgroups,

andemploymentgapsforsomeethnicgroupswasbeingtakenintoaccountacrossskillsandemployment

strategies.Oneroutetoaddressthismightbetoestablishanethnicminorityemploymentnetwork.

Transport infrastructure, services and cost

Transportemergedasakeycomponentofinclusivegrowthstrategiesinanumberofinterviews.31percentof

householdsinGreaterManchesterdonothaveaccesstoahouseholdvehicle,risingto44.5%ofhouseholds

inManchesteritself.48Consulteesnotedthehighcostofpublictransport(particularlythetram)relativetolow

wages,thefactthatmanybusservicesoftendonotrunearlyenoughinthemorningorlateenoughatnightfor

shiftworkersandthatwalkingandcyclingareonlylikelytobecomewidespreadiftherearehighlevelsofsafety

(suchascyclelanes,lightingandtrafficcalmingmeasures).

TransportforGreaterManchesteralreadyrunsanumberofschemeswiththeaimofensuringthateconomic

opportunitiesareaccessibletothosewhoareoutofworkoronlowincomes(seebelow).Busfranchising

powers,currentlybeingnegotiated,shouldalsoprovidescopefortheGMCA,underthemayor,toensurethat

busesbetterservetheneedsofresidents.Howeverthekeystumblingblockiscost–withaconstrainedbudget

andrequirementstomeetthecostsoftheNationalConcessionaryTravelSchemeforpensioners,costsfor

youngerpeoplehaveriseninrecentyears.

Traineeswhocompletedthecoursewereguaranteedaninterviewattheairport,over80%ofthemwent

ontostartwork.Thecourseprovedverypopularwithstudents,andalsowithemployersbasedatthe

airport,whowerekeentorecruitnewstaffwhocouldwelcomethemanyChinesepassengerstaking

advantageofdirectflightstoManchester.Thecoursewasrepeatedseveraltimesthroughout2015,

withover50peoplegoingontostartworkasaresult.

48TransportforGreaterManchester(2016)GreaterManchesterTransportStrategy2040:evidencebase,consultationdraft

27

Inadditiontosupportingaccesstopublictransport,someintervieweesarguedthattherewasaneednotjust

toconnectupareasbutalsotoraisedemandforpublictransportinsomeareasandtoencouragesomepeople

togooutsideoftheir‘comfortzones’andexploreawiderarea.Itwasarguedthatexistingtravelpatternsin

someareasreflectalackoffamiliaritywithotherareasbutthatimprovedtransportlinkscouldhelptochange

employmentpatternsandensuremoreopportunitiesarewithinreachofresidents.Actionwasbeingtaken

insomeareasinordertopromotethehealthbenefitsofwalkingandcycling,andthevisionforthenewGM

transportstrategytalksoftheneedtosupportmorepeopletoincludetheseactivitiesintheirdailylives.49

Supporting employment

Whilesupportforcarers,andforthosewithhealthconditionswillbeanimportantpartofanyinclusivegrowth

agendathesepolicyareasdidnotfeatureprominentlyintheinterviewsweconducted,likelyreflectingthe

sampleofinterviewees.Likewise,therewaslessdiscussionofwhatactionwasbeingtakenlocallytosupport

thedeliveryofsecure,affordablehousinginwell-connectedareas.Theseareareasthatwillneedfurther

elaborationinfuturework.

■ TransportforGreaterManchesterhasintroducedearlymorningMetrolinkservicestoManchester

Airport,beginningat0300,inordertoprovideconnectivityfromlocalareastoemployment

opportunities

49TfGM(2016)GreaterManchesterTransportStrategy2040:OurVision

28

Delivering inclusive growth

An explicit strategy

Inthissection,wefocusnotonspecificactionsthatcouldcontributetoinclusivegrowthsothattheprocesses

throughwhichashifttowardsamoreinclusiveeconomycouldbeachievedinGreaterManchester.Fourkey

pointscameupthroughourconsultation.

ThefirstwasaneedforanexplicitstrategyattheGMlevel.

GreaterManchesterisacity-regionalreadycommittedtoinclusivegrowth.TheGreaterManchesterStrategy

Stronger Togetherstatesthat“by 2020, the Manchester city-region will have pioneered a new model for sustainable

economic growth based around a more connected, talented and greener city-region where all our residents are

able to contribute to and benefit from sustained prosperity and enjoy a good quality of life”(p73).Theideaofa

‘virtuouscircle”ofinclusivegrowth–thatreducingpovertyincreaseseconomicpotentialwhilegrowthenables

morepeopletoparticipateinworkandescapepoverty–isexplicitintheGrowthandReformStrategiesofthe

GreaterManchesterCombinedAuthority.Thedesireamongleaderstobuildacity-regionwhichisbothmore

prosperousandmoreinclusivewaswidelyacknowledgedintheworkweconducted.

Stakeholderswhomweconsultedalsorecognisedtheimportanceofhavingapositivenarrativeaboutthe

city-region,ratherthanafocusonitsproblems.Nevertheless,therewasacommonviewthatthestrategyto

datehadfocusedmoreonthequantityofgrowth,andonthe‘highend’ofeconomicdevelopment–inward

investments,physicalinfrastructure,andhighvalueemployment,thanithadonthemechanismsformaking

suregrowthwasinclusive.Inthissense,ithadreflectedaseparationofeconomicandsocialpoliciesbuilt

intothestructuresofgovernmentintheUKandtosomeextentintheevolvingstructuresofcity-region

devolution.Althoughthisisshiftingground,‘localism’anddevolutiontoLocalEnterprisePartnershipsand

city-regionauthoritieshasinitiallyfocusedonrolesrelatingtoeconomicdevelopmentandskills.Anti-poverty

work,neighbourhoodregeneration,community-basedservices,educationandequalityanddiversitypolicies

haveremainedatthelocalauthoritylevel.Asonerespondentpointedout,thereisnoanti-povertystrategyat

GreaterManchesterlevel.

Thedesireforamorestronglyarticulatedstrategyforachievingbothgrowthandinclusionforthecity-region,

makingclearthelinkagesbetweeneconomicandsocialpolicies,wasthereforeacommonthemeinthe

interviewsweconducted.Onesuggestionherewastheneedforasetofindicatorswhichwouldcombine

measuresofinclusionandgrowthandprovideameasureofsuccess.

29

Thelongtermcollaborationofthecity-region’slocalauthoritiesandthefactthatGMismoreadvancedin

thedevolutionofpowersthanotherareaswereseentogivethecity-region,asonerespondentputit,“more

tools”withwhichtodothis,andindeedsincewestartedtheworkforthisreport,GMCAhasalreadymade

considerablestepstowardssuchastrategy,commencingitsownGrowthandInclusionReviewtofeedintothe

refreshoftheGreaterManchesterStrategyandcreatinganewportfolioforFairness,EqualitiesandCohesion.

Multiple actors, inclusive governance, and strategic integration

Thesecondkeypointemergingfromtheconsultationwastheneedtoseeinclusivegrowthasaresponsibility

ofthecity-regionasawhole–allitscitizensandinstitutions–notjustthecombinedlocalauthorities,sporting

andculturalinstitutions,andthereforeoftheneedtoincludeawiderrangeofpeopleinstrategydevelopment

anddelivery.

Asearliersectionsofthereporthaveindicated,keyrolesininclusivegrowthcanbeidentifiedfor‘anchor

institutions’suchastheuniversities,localauthorities,andhospitals,forlargeandsmallemployersandforcivil

societyorganisationswhichareoftenhands-oninmakingtheconnectionsbetweenpeopleandjobsand

knowledgeableabouttheissuestobeaddressed.

Conversationsaroundthesekindsofissueshighlightedtwomainkindsofproposals.Onewasthatexamplars

and‘champions’needtobefoundandencouragedandsupportedtotakeleadershiproleswithothersintheir

sectors–effectingashiftinapproachfrom‘whatthecombinedauthoritycando’to‘whatwecando’.The

benefitsofinclusivegrowthfordifferentstakeholdersneedtobeclearlymade–inparticularthe‘business

case’,showinghowmodelsbasedonLivingWages,securework,localemploymentandprocurementand

workforcedevelopmentcancontributetoaddressinghumanresourcechallengessuchasrecruitmentand

retentiondifficultiesandtimelostthroughabsence,andtoincreasedproductivity.Itwasalsoarguedthat

thereneededtobewiderrecognitionoftherolethatvoluntaryandcommunityandothersincivicsector

organisationsplayedineconomicdevelopment,withworkinthisareabeingtakenforwardbytheGreater

ManchesterVCSEReferenceGroup.

Theotherwasforwhatwasdescribedasamoreinclusivemodeofgovernance,withinclusivegrowthstrategies

beingdevelopedintransparentandconsultativewaysanddeliverymechanismsbeingco-produced.One

respondentextendedthediscussiontoissuesofformalscrutiny,pointingoutthatthesemechanismsare

weaker(ingeneral)atcity-regionlevelthanatothertiersofgovernment.Moreoften,theemphasiswason

greatercollaborationandco-production.Forexample,amongthe‘prioritiesforinclusivegrowth’emerging

fromaworkshopweranforcivilsocietyorganisationsweremanyissuesofprocess:“more information about

Devo-Manc; bottom-up not top down; better communication and consultation; including people to inform plans;

listen to people in poverty; give charity organisations a place in decision making; give social entrepreneurs a voice;

collaboration and recognition”.

Linkedtothis,numerouspeoplementionedthatdifferentorganisationsworkondifferentpartsoftheproblem

andthateffortandresourcesarewastedbyworkinginsilos.Theneedtodevelopandunderstandlocal

ecologiesofprovisionandsupportinalandscapenolongerdominatedbylocalauthoritieswasemphasised,

includingtheneedtodevelopknowledgeacrossfieldsanddisciplines.Althoughmanyofthesearefamiliar

critiquesofalackof‘joinedup'working,severalrespondentsalsomadespecificpointsaboutthedifferent

knowledge,trainingandlanguageofthoseinthe‘economicdevelopmentworld’tothoseinthe‘anti-poverty

world’.Someputforwardspecificideasaboutthekindsofthingsthatmightaid‘translation’,suchasmore

onlineconsultationandholdinglocalmeetings.

30

Ourreviewoflocalauthoritystrategiesgavesomesupporttothispointthateconomicdevelopmentandsocial

andeconomicinclusionhaveformanyyearsbeencompartmentalisedinEnglishpolicy.Atthelocalauthority

level,reducingpovertyisrarelymentionedineconomicdevelopmentstrategiesorinworkandskillsstrategies,

whileanti-povertystrategiestendtoconcentrateonissuessuchasearlyyearsservices,benefittake-up,home

insulationandfoodpoverty,debtadviceandfinancialinclusion,andresilience.Mostsuchstrategiesemphasise

theimportanceofastrongeconomyinreducingpovertyaswellastheimportanceofgettingpeopleintowork,

butdonotcontainactionstoaddressthese.Thedifferenttypesofstrategiesnecessarilyhavedifferenttargets

andmetricsanddifferentactorsareinvolved.

Nevertheless,thereareexamplesofmoreintegratedapproaches,withanti-povertystrategiesfirmlyrooted

instrategiestoimprovehighqualityemploymentopportunitiesandconnectpeopletojobs.Thesebeginto

suggesthow‘inclusion’and‘growth’canbeseenasamorecoherentagenda,andhowawiderrangeofactors

canbeincorporated.

Integrating Growth and Inclusion in Local Authority StrategiesBetter off in SalfordisSalford’sstrategytoendfamilypovertyandimprovelifechances.Itidentifiesthe

needforfourstep-changes:neighbourhoodearlyinterventionandprevention,employerengagement,

joiningupinvestment,skillsandadultlearningandfinancialinclusion.Issuesofdecentpayandin-

workprogressionarekeythemesandthestrategypledgesto“engage and work with new and existing

employers in order to link more local families to work that pays as well as to make sure they have the support

needed to continue to develop and progress once in work”.Lowadultskillsareidentifiedasakeydriverof

childpoverty.Thestrategyalsocontainsmorefamiliaraspectsofanti-povertystrategies,suchasearly

yearsinterventionsandfinancialinclusion,butisnotableforitsfocusontheeconomyandonemployers

askeyactorsinpovertyreduction.

Tackling Poverty in Tamesideidentifiesthreekeythemes:workingtogether(apartnershipapproach),

preventionofpovertythrougharesilientlocaleconomyandalleviatingtheimpactofpoverty(through

approachessuchasreducinglivingcostsandimprovingaccesstoservices).“The cornerstone of our

strategy and key to the prevention of poverty is the development of a resilient local economy to improve the

availability of sustainable and well paid employment”.Thereisastrongemphasisonlowpay,especiallyfor

womenworkingparttime,andrecognitionofmoneyflowsinthelocaleconomy–increasingpayhelps

raisetheaggregatedemandforgoodsandservices.

The Wigan Deal for the FutureisWigan’soverarchingstrategywhichaimstomakeWigana“confident

place … Where people want to work, invest, live and visit”.TheDealasawholesetsoutaninformalcontract

betweenthelocalauthority,residentsandbusinesses,recognisingthatallneedtochangeandplay

theirpart.KeythemesfortheCouncil’sworkincludeanewrelationshipbetweenpublicservicesand

citizens,anasset-basedapproachandintegratedservicesthatplacefamiliesandcommunitiesatthe

heart.Thesearepicturedasprovidingthelinkbetween‘reform’andgrowth’.Officersidentifiedthe

strongemphasisonpartnershipworkingasakeyaspectthatmightbemorewidelyadoptedacrossGM.

Wigan’sEconomicProspectuslinkstotheDealasawhole,withfourkeystrands:a)enablinggrowth;b)

equippinglocalpeopletoaccessworkopportunities;c)ensuringtherightinfrastructureconnectionsare

inplace;andd)buildingprideandbeliefinWigan.

31

Focus on the most disadvantaged people and places

Finally,itwaspointedoutthatwhileourapproachthroughoutthisreporthasbeentothinkaboutinclusionand

inequalitiesasstructuralissuesaffectingtheGMeconomyandsocietyasawholeandtoaddressthemonan

issuebyissuebasis,itisveryoftenthesamepeopleandplacesthatareaffectedbymultipleissues.

Thus,aswellasstrategiesthataimtocreateamoreinclusiveeconomyforeverybody,thereremainsaneed

tofocusonpeoplewhoareexperiencingormostatriskofsocialexclusionandonneighbourhoodswithhigh

levelsofdeprivation.Theimportanceofplacefactors(neighbourhoodenvironments,transport,community

supportandserviceprovisionforexample)topeople’slifechancesandopportunitieswasalsorecognised.

However,asonerespondentpointedout,thewiderimplicationisthatthereneedstobeaclearfocusonthe

poorestpartsofGreaterManchesterwithineconomicstrategies,notjustwithinsocialprogrammes,andat

GMlevelnotjustatlocalauthoritylevel.Similarlyeconomicstrategiesneedtobeclearonissuesofinclusion

forgroupswhotendtobedisadvantagedinthelabourmarket–forexamplepeoplewithdisabilitiesand

someminorityethniccommunities.Theimpactofmajordevelopmentprojectsonmarginalisedplacesand

groupscouldbeassessedaspartofprojectappraisal,andthecollectiveimpactofmajordevelopmentson

theseplacesandgroupscouldbescrutinisedovertime–recognisingthattherecanbeunintendednegative

consequencesandthatproposedbenefitsarehardtodeliverandwillnotalwayshappenwithoutreinforcement

andremedialstrategies.

Localplace-basedmulti-agencyworkingiscrucialhereandtherewillbemultipleexamplesofsuchapproaches

acrosstheconurbation.OneexamplewhichwasdrawntoourattentionwasinRochdale,wherethelocal

authorityhasinitiatedamulti-strandedprojecttoaddresspovertyandlongtermunemploymentonthe

Kirkholtestate,includingincreasedadulteducationatthelocalcommunitycentre,acommunitychampions

programme,andkeyworkersfromamulti-stakeholderteamofferingperson-centredandvoluntarysupport

tohouseholdsidentifiedbypolicecall-outrates.Thecomplexityandlongtermnatureofimprovingoutcomes

forthemostmarginalisedgroupscameoutinmanyofthecasestudiesofexistinglocalworkthatwehave

includedhereandotherswhich,forreasonsofspace,wehavenot.Theneedforbespokelocalsolutionsand

continuityandsecurityoffundingwererepeatedlyemphasised,amidconcernsthatmorecentralisedand

largerscalecommissioningandfundingconstraintsriskedsqueezingoutsomeoftheorganisationsand

projectsmostcapableofdeliveringthiswork.

32

Summary and conclusions

The scope and limitations of this report

Astheideaof‘inclusivegrowth’gainstractionasaresponsetoentrenchedpovertyandinequalitiesin

advancedeconomies,thisreportisintendedtohelpbuildanunderstandingofsomeofthethingsthatmightbe

doneataGreaterManchesterleveltobuildamoreinclusiveeconomyandtoincludemorepeopleineconomic

opportunity.

IGAUworkswithanunderstandingofinclusivegrowthasbeingabouteconomicinclusion,andastherefore

beingonlyasubsetofthepoliciesandstrategiesthatwouldbeneededtoreducepovertyandachievegreater

socialjustice.Ourworkshouldthereforecomplementbutnotsubstitutefortheeffortsofotherorganisations

strivingtowardsthoseendsinthecity-region.

Wearealsofocusingonactionatacity-regionlevel.TheproblemsofpovertyandinequalitythatGreater

ManchesterfacesandwhichwesetoutinourearlierreportInclusive Growth: Opportunities and Challenges

for Greater Manchester,werenotlocallycreatedoruniquetoourcity-region.Theyreflectprocessesof

economicglobalisationandtechnologicalchangeandthewaysthatthesehavebeenhandledinUKpolicy.

WhilethisreportlookstowhatcouldbedonebyactorsinGreaterManchesterinthecontextofcity-region

devolution,itdoesnotmeantoimplythatallsolutionscanbefoundlocally.Inparticular,theadequate

fundingofpublicservicesbycentralgovernmentisakeyessentialcomponentofinclusivegrowth,asissocial

protection,employmentregulationandothercentralgovernmentresponsibilities.Moreneedstobedoneto

understandthepotentialcontributionsofandlimitationstolocalpolicies,andtheactionneedednationally

andinternationally.

Thisreportisbasedonconsultationswithkeystakeholderswhowereapproachedornominatedbytheir

organisationsbecausetheyareknowledgeableabouteconomicgrowthorpovertyandinequalityinthe

city-region.Itisnotcomprehensive–awiderconsultationwouldhaveproducedfullercoverageofsome

oftherelevantthemes.Nordoesitclaimtobeaninclusivegrowthstrategy.Ideasandsuggestionshave

beentakenatfacevalueandwehavenotcostedthemorevaluatedtheminthelightofotherevidence.The

reportsimplyidentifiesexamplesofeffectiveorpromisingstrategiesorpracticesthatmightbebuiltupon,

aswellassomeofthekeygapsandchallenges.Wehopeitwillprovideaframeworkandsomeideastobe

workedwithbyorganisationsandindividualsworkingtowardsinclusivegrowthinGreaterManchesterandin

othercities.



33

Towards Inclusive Growth – what should be done?

Keyareasidentifiedinthisworktodevelop a more inclusive economywere:

■ Increasing the number of employers paying the Living Wage, particularly those operating in low paying sectors and large employers, partly by promoting the Living Wage campaign but also by establishing and promoting standards of decent employment across the city-region, building on experience in certain local authorities.

■ Maximising the local employment impact of the activities of the city-region’s ‘anchor institutions’ by increasing local procurement and developing the capacity of smaller local business to supply goods and services.

■ Understanding the contribution of flexible working to reducing non-employment and under-employment and seeking mechanisms to promote this.

■ Understanding how different forms of economic growth contribute to inclusion and exploring broader economic strategies including: promoting different forms of business organisation (e.g. co-ops, mutual and social enterprises); developing sectors that may be slower or lower growing but create higher quality jobs; and increasing support for local start-ups and small businesses.

■ Understanding more about the ways in which wealth generated within the Greater Manchester economy can be utilised for greater local benefit (for example through local investments, philanthropy or in-kind support to small firms or civil society organisations) and developing schemes of this nature.

Itwillbeobvious,firstofall,thatmuchoftheactionproposedherereliesontheprivatesector,althoughthe

potentialforleadershipbythecity-region’spublicsectoranchorinstitutionswasalsorepeatedlystressed.

Muchmoreneedstobedonetounderstandthecurrentpracticesoffirmsandanchorinstitutions,inorderto

establishthecapacityforchangeandtheincentives,supportandinformationthatdifferentkindsofemployers

wouldneedtoenablebehaviourchangeonasignificantscale.Moredetailedanalysisisalsoneededtosupport

thedevelopmentofarobusteconomicstrategyforthecity-regionthatisalsomorediverse.Whatlevelsof

investmentinstart-ups,socialenterprisesandlocalsupplychaindevelopmentwouldbeneededtomakea

significantdifferenceandhowwouldtheseweighupagainstotherinvestmentstrategies?Shouldthesebe

geographicallytargetedandifsowhere?Howcanlinksbetweenmajorinvestmentsandcommunityeconomic

developmentbemaximised?Whilethedevelopmentofamoreinclusiveeconomyappearstohavewide

support,italsorequireslarge-scalechangeandthedevelopmentofnewpoliciesandstrategiesthathavenot

beenpartofmainstreamurbaneconomicdevelopmentinrecentyears.

Keyareasforincluding more people in economic opportunitywere:

■ Ensuring that opportunities for people to gain basic and Level 1 skills are not squeezed out through a combination of funding constraints and centralised commissioning.

■ Offering effective advice, guidance and funding to people who have moved from unemployment into employment in order to enable them to progress.

■ Working with business to help them to see the benefits of workforce development and directly linking them to funding and support opportunities.

■ Using apprenticeship funding strategically to support entry to employment for young people in disadvantaged areas.

■ Ensuring long term, intensive and holistic support for those furthest from the labour market.

■ Working with employers to develop training and into-work programmes directly linked to actual vacancies.

34

Comparedwithactiontocreateamoreinclusiveeconomy,moreofthissphereofactivitycomesunderthe

remitofthepublicsectorandcivilsociety.Inmostcasespeoplecouldidentifythekindsofpracticesthatwere

effective,andindeedmanyofthesearegoingonacrossGreaterManchester.Thesearchappearedtobeless

forinnovationindeliverythanforsystemsofcommissioningandfundingthatcouldallowthesustainabilityof

effectiveprogrammes,andfornewwaysofleveringsystem-widechange.Fundingfromcentralgovernment

wasclearlyimplicated.Nevertheless,devolutionwasseenasanopportunitytodevelopasharedvisionand

collaborativeworkingacrosstraditionalpublicsectorsilosatthelocallevel.Successisunlikelytobeachieved

unlessemployersareconvincedofthebusinesscasesforlocalrecruitment,apprenticeships,trainingandin-

workprogressionsothesecaseshavetobewellevidencedandwellcommunicated,workingwithemployers

Overall,key areas identified for the development of an inclusive growth agenda in Greater Manchester were:

■ The need for an overall strategy setting out objectives (and possibly indicators) for inclusive growth and integrating economic with social strategies.

■ Seeing inclusive growth as a shared agenda with multiple actors and participants, not just as a public sector agenda.

■ Finding ‘champions’ among anchor institutions, employers and other organisations.

■ Developing forms of ‘inclusive governance’ allowing greater participation in economic decision making and greater co-production of services.

■ Focusing on the most disadvantaged people and places, both through targeted interventions but also through impact assessments to ensure that major strategies and developments reach, and do not further disadvantage, people who are already marginalised.

Next steps

Atthetimeofwritingthisreport,GreaterManchesterfacessomeverysignificantchallengesinachievingmore

inclusivegrowth.Whiletherearemanyeffectiveinterventionsandstrategieslocally,thereisstillaverylongwaytogo.

However,thecity-regionhastheadvantageofclearpoliticalleadershiponthisagenda,awiderrangeof

devolvedpowersthanothercity-regionsand,asthisconsultationreveals,aconsiderablewiderbodyof

expertise,knowledgeandcommitmentinpublic,privateandcivilsocietyinstitutions.

IGAUintendstosupportthedevelopmentofaninclusivegrowthagendathroughconductingfurtherresearch

andanalysisandbyconveningstakeholderstopromotediscussionanddialoguearoundwhatcanbedone.

Activitiesin2016/17willinclude:

■ Independent and joint events to convene people around the ideas in this report and to develop areas of action and research.

■ Initiating work to convene anchor institutions around their potential roles in inclusive growth.

■ Undertaking in depth analysis to identify critical challenges and opportunities for inclusive growth in Greater Manchester’s most deprived neighbourhoods, and working with residents and other experts to develop policy and practice proposals.

■ An inclusive growth blog and commentary pieces, bringing evidence from other cities and countries to bear on the GM experience.

Pleasecontactus–[email protected]–orvisitourwebsite–www.manchester.ac.uk/inclusivegrowth–if

youareinterestedincollaboratingwithus.

mailto:igau%40manchester.ac.uk?subject=


35

Appendix 1: Methodology

Thisreportdrawson:

■ Areviewofexistingstrategiesrelatingtoeconomicgrowthandpovertyacrossthelocalauthoritiesof

GreaterManchester;

■ Consultationandsemi-structuredinterviewswitharangeofstakeholders;

■ Gatheringfollow-upcasestudiesofinitiativesfromGMandbeyondthatmightbelongtoaninclusive

growthagenda.

SomestakeholderswereselectedbecausetheyaremembersoftheexternaladvisoryboardforIGAU,

occupyingthosepositionsinarepresentativecapacityorbecauseoftheirpersonalexpertiseinrelevantissues.

Otherswerenominatedbylocalauthoritiesorotherkeypublicsectororganisations.

Stakeholderconversationswerelooselystructured,withparticipantsaskedtodiscusswhattheymeantby

inclusivegrowth,andtoidentifypriorities,successandgapsinanyorallofthefollowingareas(orothersthat

theywantedtoinclude)

■ Economicdevelopmentstrategiesandinvestmentdecisions

■ Strategiestoincreasethequalityofworkandraisewages

■ Strategiestoensurethatthebenefitsofgrowtharereapedlocally,suchasbuildinglocalsupplychains

■ Strategiestobetterconnectdisadvantagedpeopletojobopportunities

■ Strategiestopromotelearningandskilldevelopment

■ Strategiestosupportemploymentandreducelivingcosts,suchastransport,childcareandhousing

■ Overallstrategiesandactionsfordevelopingasharedvisionandleadershipofaninclusivegrowthagenda

Interviewees represented:

■ GMHealthandSocialCareReform

■ TraffordMBC(EconomicDevelopment)

■ SalfordCityCouncil(Strategyandchange)

■ RochdaleMBC(Economicdevelopment)

36

■ StockportMBC(Economicdevelopment)

■ ManchesterCityCouncil(Regeneration)

■ OldhamMBC(Economicdevelopment,skillsandregeneration)

■ TamesideMBC(Economicdevelopment)

■ WiganMBC(Economicdevelopment)

■ BoltonMBC(Economicdevelopment)

■ GMCollegesGroup

■ TransportforGreaterManchester

■ IPPRNorth

■ CentreforLocalEconomicStrategies

■ GMBMENetwork

■ GMCouncilforVoluntaryOrganisations

■ GMFederationofSmallBusinesses

■ GMLivingWageCampaign

■ GMPovertyAction

■ OxfamUK

■ SteadyStateManchester

■ TraffordHousingTrust

■ UnisonNorthWest

AnumberofcolleaguesfromNewEconomyandtheManchesterGrowthCompany(workingonbehalfofthe

combinedauthority)havealsoprovidedinformationaboutexistingstrategiesandon-goingdevelopmentsin

relationtoearlyyears,skillsandemploymentprogrammes,careersinformationadviceandguidance,business

support,economicandgrowthandreformstrategiesandGMCA’sgrowthandinclusionreview,

Larger meetings and workshops

■ GMVCSEDevolutionReferenceGroup

■ Thirdsectorworkshop“LocalEconomicDevelopmentandInclusiveGrowthinGreaterManchester”,

GMCVO

■ Tradesunionworkshop“InclusiveGrowthinGreaterManchester:TheRoleofMajorEmployers”Unison

NorthWest-June10

■ EducationandEmploymentWorkshopat“DemocraticDevolution–theFutureofGreaterManchester”day,

for14-21yearolds

IGAUisanindependentunitestablishedintheUniversityofManchesterandfundedby

theUniversityandtheJosephRowntreeFoundation.Itsgoalsaretohelpensurethat

povertyreductioniscentraltocurrentpolicydebateandactionaroundeconomicgrowth,

the‘NorthernPowerhouse’anddevolutioninGreaterManchester,andtohelpdevelop

evidence-basedstrategiesforinclusivegrowth.

Wearegratefultoallthosewhogaveuptheirtimetobeinterviewedforthisreportandwhoprovided

supplementarydocumentsandstrategies.WealsothankcolleaguesattheJosephRowntreeFoundation

andUniversityofManchesterandmembersofourindependentadvisorygroupwhocommentedondraftsor

otherwisehelpedwiththeproductionofthisreport.

©UniversityofManchester2016

Designedby:NickAsherCreative

PhotographsbyMarkWaughandcourtesyoftheUniversityofManchester

Formoreinformationpleasevisitourwebsite:www.manchester.ac.uk/inclusivegrowth

Information and acknowledgments


The University of ManchesterOxford RoadManchesterM13 9PLUnited Kingdom

www.manchester.ac.uk

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