Greater Manchester's economy, already boasting a Gross Value Added (GVA) of £78.7 billion, holds a significant key to national prosperity. The core proposition of Andy Burnham's devolution plan, articulated in June 2026, is that by lifting the region's productivity to the UK average, an estimated £8.2 billion could be added to the UK economy annually. This isn't merely a regional aspiration; it's a national economic imperative.
Burnham, advocating for what he terms 'Manchesterism' – a 'place first, not party first' approach – has outlined a vision to fundamentally rebalance power, moving it from Westminster to local hands. His proposed 'No. 10 North' office in Manchester, he states, 'will co-ordinate all parts of government at national and local level to agree [on] a long-term economic strategy and help all places set new growth ambitions.'
What Changed and By How Much?
The foundation for this expanded devolution was laid years ago. Following the 2015 'Devo Manc' deal, Greater Manchester received £450 million in additional funding for health and social care. This led to an average per-capita increase of £66.58 in annual health and care expenditure post-devolution.
More recently, the March 2023 'Trailblazer' deal significantly deepened this autonomy. The government stated this deal 'sets out a landmark new approach to devolution in England, devolving responsibility for a clear set of policies and functions to GMCA to support economic growth.' Crucially, it provides the Greater Manchester Combined Authority (GMCA) with 'greater control than ever before over the levers of economic prosperity.' This includes a commitment to a new, department-style single settlement for GMCA from the next spending review period and long-term certainty over 100% business rates retention.
In practical terms, this means Greater Manchester will gain local leadership of the Affordable Homes Programme, valued at £400 million, and receive £150 million for brownfield funding. Burnham has also pledged the 'biggest council house building programme since the post-war period,' aiming to accelerate the delivery of over 17,000 homes across strategic growth locations.
The Investment Engine
At the heart of the economic growth strategy is a substantial investment pipeline. Greater Manchester's 10-year growth strategy includes a £10 billion pipeline of investment projects, with a goal to deliver up to £1 billion of investment per year. This is projected to generate 'tens of thousands of jobs' alongside the housing delivery.
A key component is the Greater Manchester Investment Zone, which has £160 million allocated for projects and programmes over the next 10 years. This funding is specifically targeting the advanced materials and manufacturing sector, a strategic choice given the region's industrial heritage and potential. The Investment Zone also benefits from devolved business rates revenues for 25 years, which will be reinvested directly into the sector, creating a self-sustaining funding mechanism for regional growth.
Further fiscal devolution could provide a significant boost. Analysis by the Resolution Foundation suggests that devolving a share of income tax to mayors, coupled with higher growth, could see Greater Manchester raise between £49 million and £230 million in additional income tax revenues annually by 2038. This represents a substantial potential increase in local financial firepower.
Scenario: A Business in Greater Manchester
Consider a small manufacturing business owner in Bolton, operating within Greater Manchester's designated Investment Zone. With £160 million allocated over 10 years specifically for advanced materials and manufacturing, and devolved business rates revenues reinvested locally, this owner might see direct benefits. Access to new funding streams, improved local infrastructure, and a more skilled local workforce, driven by the £10 billion investment pipeline, could reduce operational costs and open new markets. This isn't merely theoretical; it's the practical application of 'place first' economics, aiming to translate policy into tangible local advantage and 'good growth in every postcode,' as Burnham has stated.
But there are risks
Economic transformation is rarely a swift or guaranteed process. While the figures are ambitious, achieving them requires sustained political will, effective cross-sector collaboration, and favourable national economic conditions. The Resolution Foundation's projections for increased income tax revenues, for example, are presented as a potential range (£49 million to £230 million annually by 2038), underscoring the inherent uncertainty in long-term economic forecasting. The success hinges not just on the plans themselves, but on their meticulous execution and adaptation to unforeseen challenges. The promise of 'tens of thousands of jobs' and '17,000 homes' must navigate the complexities of planning, funding, and labour market dynamics.
What this means for you
Should Greater Manchester's economy indeed accelerate, residents may find themselves with greater disposable income or increased property equity. For those looking to save or invest any additional funds, it's prudent to consider tax-efficient wrappers. A Cash ISA allows you to save up to £20,000 per tax year without paying tax on interest. For first-time buyers under 40, a Lifetime ISA offers a 25% government bonus on contributions up to £4,000 annually, potentially adding £1,000 to your savings each year. Beyond these, your Personal Savings Allowance means basic rate taxpayers can earn £1,000 in interest tax-free, while higher rate taxpayers receive £500. Interest exceeding these thresholds in standard accounts becomes taxable.
Practical Steps Right Now
- Stay Informed: Monitor local council announcements and Greater Manchester Combined Authority (GMCA) updates for specific project developments and funding opportunities.
- Engage Locally: For businesses, explore the support available through the Investment Zone and local business networks. For residents, understand how housing initiatives might affect your area.
- Review Finances: If you anticipate increased income or property value, consider consulting a financial adviser to optimise your savings and investments using tax-efficient accounts like ISAs.
When Effective
The devolution deal itself was formalised in March 2023, with many of its provisions, such as the single settlement and business rates retention, coming into effect from the next spending review period. The £10 billion investment pipeline and Investment Zone funding are long-term strategies, unfolding over the next 10 years. Burnham's broader vision, including the 'No. 10 North' and 'biggest rebalancing of power,' is an ongoing political and economic project, with his June 2026 statements outlining the current trajectory.
Where to Get Help
For detailed information on Greater Manchester's economic plans, consult the Greater Manchester Combined Authority (GMCA) website. For personal financial planning, particularly regarding tax-efficient savings and investments, seek advice from an independent financial adviser. Local councils can provide specific details on housing and regeneration projects in your immediate area.
This is not financial advice. Seek independent financial guidance. Interest on standard accounts may be subject to tax above your Personal Savings Allowance.
Sources
- GOV.UK — Greater Manchester Combined Authority Trailblazer deeper devolution deal (March 15, 2023)
- Andy Burnham — Statement on devolution and economic plans (June 29, 2026)
- Resolution Foundation — Analysis on fiscal devolution potential for mayors
- Greater Manchester Combined Authority — Economic data and 10-year growth strategy details
- BBC News — Coverage of Andy Burnham's devolution plans
- The Conversation — Analysis of Andy Burnham's economic plans