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Manchester

Volume 690: debated on Tuesday 27 March 2007

asked Her Majesty's Government:

What is their assessment of the contribution which Manchester makes to the growth and prosperity of the economy of the north-west of England; and how this compares to the contribution made by other parts of the region. [HL2749]

The information requested falls within the responsibility of the National Statistician, who has been asked to reply.

Letter from Karen Dunnell, National Statistician, to Lord Morris, dated 27 March 2007.

As National Statistician I have been asked to reply to your recent Question about the contribution that Manchester makes to the growth and prosperity of the economy of the North West of England and how this compares to the contribution made by other parts of the region. (HL2749)

The Office for National Statistics publishes regional gross value added using official statistical geographies known as Nomenclature of Units for Territorial Statistics (NUTS)1. Greater Manchester is one such NUTS area and its statistics can be compared to the other North West areas: Cumbria, Cheshire, Lancashire and Merseyside.

The measure of economic growth used by the ONS is growth of gross value added (GVA). Table 1 shows GVA for the North West and for each NUTS2 area within the North West. The latest available estimates are for 2004. This table indicates the level of economic activity in Greater Manchester as compared to the other North West areas. Table 2 shows annual growth for 2003 and 2004 in GVA for the same areas.

Regional GVA figures are only produced at current prices and do not allow for changes in prices over time (inflation) or differences in regional price levels (purchasing power). They do not, therefore, show growth in real or volume terms.

The full range of published regional GVA estimates are available on the ONS website: www.statistics.gov.uk/statbase/Product.asp?vlnk=14650.

1 The Nomenclature of Units for Territorial Statistics (NUTS) provides a single uniform breakdown for the production of regional statistics for the European Union. There are three levels of NUTS in the UK. These are:

NUTS1: Government Office Regions and Scotland, Wales and Northern Ireland.

NUTS2: 37 areas—individual and groups of counties and unitary authorities.

NUTS3: 133 areas—generally groups of unitary authorities or districts, also known as local areas.

Table 1

North West Regional Gross Value Added1

2003 (£m)

2004 (£m)

North West

96 828

102 366

Cumbria

6 047

6 440

Cheshire

17 361

18 183

Greater Manchester

38 109

40 457

Lancashire

19 215

20 285

Merseyside

16 096

17 001

1 GVA at current basic prices

Table 2

North West Regional Gross Value Added1 Percentage Change

GVA percentage change

2003

2004

North West

5.4%

5.7%

Cumbria

6.6%

6.5%

Cheshire

4.2%

4.7%

Greater Manchester

5.8%

6.2%

Lancashire

5.1%

5.6%

Merseyside

5.7%

5.6%

1. GVA at current basic prices.

Note: The percentage change in Table 2 does not take account of changes in population which can be seen in Table 1 of your previous question (HL2635).