The effectiveness of devolving powers to local governments in boosting economic growth is under examination, with particular focus on proposals that would grant further autonomy to regions like Greater Manchester. While some economists suggest devolution has contributed to the region's performance over the past 15 years, questions linger regarding the reliability of productivity figures and the precise impact of these policy shifts.
Greater Manchester's devolution has been credited with improvements in housing strategy, the direction of housing investment funding, and the coordination of affordable housing programs. The mayoralty is empowered to oversee these areas, aiming to attract investment and create jobs. The development of the Bee Network, a bus system brought under mayoral control, and efforts to encourage private sector investment in Manchester's city center are also cited as positive outcomes of devolved powers.
Andrew Carter of the Centre for Cities think tank noted that Greater Manchester's leadership has recognized the importance of fostering a diverse economic landscape. "They're prepared to do what is required - build the housing, support the expansion of the university, support research and development, try to introduce a transport system which really supports all of that kind of stuff. And as a result you become more attractive to investment, whether it's foreign or domestic," Carter stated.
However, some analysts have expressed skepticism about the accuracy of recent productivity figures, suggesting that high growth in residential areas might be influenced by data anomalies. This has led to debate about attributing economic success solely to the devolution of powers. Despite these concerns, a consensus among many economists acknowledges that Greater Manchester has demonstrated stronger performance compared to other UK city regions over the last decade and a half, with a portion of this success linked to the transfer of authority in areas such as transport, planning, and housing.