Business Support Policy in Greater Manchester Adele Reynolds, Head of Business & Science Policy, New Economy Unlocking a new era of business growth and productivity: 30 th September 2015

Context – challenges and opportunities Significant reductions in public spending – IFS suggest BIS likely to face cuts of 20-30% in spending review Whilst employment has grown, productivity remains low and still a significant gap between tax and spend in GM Chancellor’s commitment to a ‘Northern Powerhouse’ recognising that northern prosperity is national prosperity Building upon 2014 devolution deal – commitment to radical devolution in Spending Review 2015

Our Ambition A financially self-sustaining city region, sitting at the heart of the Northern Powerhouse Achieving sustainable economic growth that all of our residents can contribute to and benefit from –Creating the conditions for growth –Increasing total productivity –Fostering a new relationship between individual and state

GVA per capita -£8.2bn Demographic and labour participation factors 20% Working age population 12% Comm- uting 4% Employment 35% In-work productivity factors 80% Sector productivity 100% Sector mix +20% Understanding GM’s productivity gap GM has an £8.2bn productivity gap with the rest of the UK Low GVA per job productivity within sectors account for the majority of the gap GM has a good sectoral mix but it is the firm and job composition within sectors that matters Need to change the nature of work done in GM. Quality of jobs as well as quantity.

2014 Business Survey: Policy Implications Skills Business growth Innovation Finance Positive platform for improving skills in GM – strong business prospects, high interest in apprenticeships, engagement with work experience Need to capitalise on this as GM develops new approach through devolution deal and looks to tackle productivity gap Building on successes in influencing big science infrastructure investment, working with local & national institutions, stimulating appetite for innovation amongst firms all important, and ensuring adequate funding is in place. A significant number of firms are still having difficulty accessing finance – especially for growth and innovation Scope to develop niche products targeted at particular challenges Importance of public and private sector working together. Most firms don’t export and are not planning to – deeper dive on barriers to export will feed into a refreshed Internationalisation Strategy

CSR 2015: Business Support Devolution GM’s submission to CSR 2015 responds to the key economic and business challenges identified by 2014 Business Survey GM proposes to build upon existing locally designed and delivered advice and support, aligned and integrated with national services Supporting businesses with growth ambition and potential in: –leadership and management –innovation support –export advice –alternative finance provision –workforce development Our business finance proposals would see GM entering into a strategic partnership with the British Business Bank which would increase supply of finance to small and growing businesses (loan and seed/early stage).

Long term impact of devolution on business Skills – A system of skills supply that better aligns with current and future needs of business and economy Business Support – One integrated offer to support businesses to grow rather than a disparate set of products and programmes Transport - An integrated transport system allowing businesses to access a much more connected labour market and larger pool of skills and talent. Health – A greater focus on preventing ill- health and promoting well-being contributing to a healthier and more productive workforce