The latest Investment Attractiveness Index has been compiled by a team of experts at the Centre for Economics and Business Research (Cebr), who have analysed the UK’s 50 largest cities according to eight indicators related to growth potential, local infrastructure and local skills.
The report from law firm Irwin Mitchell says Manchester has moved up the rankings from 10th place to eighth despite its overall attractiveness score being 7.7 points lower than the previous year. This reduction in the overall score was in line with all but one of the other 50 cities analysed and mainly due to lower predicted GVA growth in 2024 compared to 2023.
Despite this, Irwin Mitchell’s report reveals that Manchester is performing well in other areas. Improved online connectivity boosted its local Infrastructure score whilst its local skills pillar was boosted by strong scores in terms of qualifications, the number of economically active people, and the number of universities.
Bryan Bletso, partner and head of international at Irwin Mitchell, said: “The results in our report point to challenging conditions and mirror the sentiment amongst both businesses in the North West and overseas investors that we are speaking to.
“Manchester’s relatively strong performance comes as no surprise. The city has many accessible universities, a large economically active population, and benefits from robust public transport use. These factors together make the Manchester area, both the city and Greater Manchester, attractive to businesses seeking to employ a large, educated local workforce supported by a strong public transport network.
“The recent King’s Speech, and the proposed introduction of an English Devolution Bill, is vital also for the creation of a modern, dynamic economy that is attractive to foreign investors. We certainly welcome legislation that will give new powers to metro mayors and combined authorities.”
Stockport has secured an eight-place jump in its ranking in the 2024 Investment Attractiveness Index, rising to 25th. This rise is largely due to its improved performance in the local infrastructure pillar (+14.9 points), driven by significant enhancements in its online connectivity, which saw a year-on-year improvement of 45 points.
Liverpool is in a similar position (27th) but this represents a fall of three places compared to 2023. Although the city has improved online connectivity, other factors mean its local infrastructure score was lower relative to other cities. This is also the case with growth potential which was hit by a 58.5 point reduction in forecasted GVA growth in 2024.
Warrington’s overall score reduced by 8.2 points but it improved its ranking by one which moved it to 20th place. Preston performed similarly and is now a in 22nd position.
