Manchester|November 3rd, 2025

Second City? Manchester overtakes London

In the last 20 years, the Cottonopolis has been weaving a story of reinvention; now the numbers tell it best. Once trailing the UK average on productivity, Greater Manchester has spent two decades quietly gaining ground. Manchester hasn't only close the gap with London, it's outpaced the capital in productivity growth.

The BRIK-Down

Fresh data from the Northern Powerhouse Partnership confirms Greater Manchester is in full boom after delivering the strongest productivity growth of any combined authority in the UK. Between 2004 and 2023, Gross Value Added (GVA) per hour worked lifted 31%, way more than London's did. Sure, the two cities aren't quite equal in absolute GDP terms...but that north-south divide could close fast.

According to the Office for National Statistics, "The North West made the largest positive contribution to productivity growth in 2023 when compared with 2019" and, in fact, London's contribution went into negative numbers when seen side by side.

The North West saw an annual growth of 2.4% for total hours worked, output per hour worked, gross value added, which was the largest of any region (while London had the furthest fall of any region, dipping to - 0.3%).

Before we move on, let's pause on the word 'productivity'. It sounds good, but what does it mean for Manchester? Productivity is the measure of how time becomes economic value, and how well our hours turn into impact.

So when productivity is reportedly on the up, so is the prosperity of the region.

Image:The Mill - manchestermill.co.uk

The Drivers

It's no accidental shift. Sustained investment and new powers have reimagined the city-region's economic base:

  • Transport: From the Northern Hub to the Ordsall Chord, and the long-term vision of Northern Powerhouse Rail, upgraded connectivity has pulled people and business closer.
  • Power Shifts: Getting ourselves a metro mayor (with teeth) means decisions on skills, housing and growth have happened closer to home.
  • Innovation Clusters: From advanced manufacturing to health tech, new districts have created jobs in highly valued industries.
  • Infrastructure: Upping public realm spaces, cultural venues and regeneration efforts have all supported both productivity and place.

The Big Picture

It's a simple headline: over the last two decades, Greater Manchester has accelerated faster than London when it comes to productivity growth.

For policymakers, it's proof localised power, targeted investment and long-term planning come good. For residents, it means healthier wages and opportunities in a region pulling closer to the country's economic core.

Our Take

Manchester has been chipping away at its ambitions to compete on a national and global stage for the last 20 years. Productivity (and confidence) are growing and London no longer has the monopoly on momentum.

We've already overtaken them on GVA; now it's time for Greater Manchester to take off. The data doesn't lie.