Productivity data show green shoots in closing North–South divide as Greater Manchester named productivity growth capital of UK

New analysis from the Northern Powerhouse Partnership has demonstrated that Greater Manchester has seen the biggest increase in productivity of any UK region or mayoralty over the past two decades, cementing its position as the UK’s productivity growth capital.

Between 2004 and 2023, Greater Manchester recorded the highest rise in gross value added (GVA) per hour worked, outperforming every other combined authority and city region for growth across the UK. This follows a period of sustained investment in public transport and infrastructure, alongside the long-term devolution of powers to Greater Manchester’s metro mayor. The 31% increase in productivity is a huge achievement which has begun to meaningfully close the gap between the city region with London.

Meanwhile, the northern town of Rotherham has emerged as one of the fastest-growing sub-regional economies for productivity in the UK and the fastest-growing in the North, with a 63.9% increase in productivity over the same period.

This dramatic improvement has been driven by the growth of the Advanced Manufacturing Innovation District shared with neighbouring Sheffield in South Yorkshire. It is a regeneration success story that has turned former site of the of the battle of Orgreave into a globally recognised hub for high-value manufacturing. It includes the Advanced Manufacturing Research Centre which has attracted inward investment to the area and has most recently been helping with R&D for Rolls Royce SMR (Small Modular Reactors) project.

Explore the data

You can explore the full dataset behind our analysis via the interactive charts below:

• ITL1 – UK Regions and Nations
  Growth in GVA per hour worked across the UK’s main regions, 2004–2023.
• ITL2 – Sub-regional areas
  Productivity trends across combined authorities and city regions, including Greater Manchester.
• ITL3 – Local authority areas
  Local-level performance, highlighting standouts like Rotherham.

These charts are based on ONS labour productivity data, analysed by the Northern Powerhouse Partnership.

Andrew McPhillips, Chief Economist for the Northern Powerhouse Partnership, said:

“This is a milestone moment for the North. Greater Manchester leading the UK on productivity growth shows what’s possible with long-term leadership with ambition, major investment in public transport and more powers through devolution. More of the great Northern cities are taking their destiny in their own hands as Greater Manchester did and we can expect similar success, particularly if their respective economies become better connected through projects initially like TransPennine Route Upgrade and start to be able to reinforce each other’s growth.

“Rotherham’s success at the heart of South Yorkshire shows how industrial innovation, skills and regeneration can transform a local economy. The Advanced Manufacturing Park has put Rotherham on the global map, this is the kind of model we need to replicate right across the North from Atom Valley to Goole in the Humber Freeport.”

Mayor of Greater Manchester, Andy Burnham, said:

“Greater Manchester has been the UK’s economic success story over the past two decades. We are showing what can be achieved when ambition is matched by devolution and investment, forging a path for other English cities and regions to follow.

“We are beginning to close the productivity gap with London and the South East, but the job is far from over, and we are already hitting constraints. We need the Government to give us the right powers and funding, particularly on transport and skills, so that we can remove those constraints and accelerate our city-region’s growth in the decades to come, creating opportunities and prosperity for our people while powering the growth of the UK economy.”

South Yorkshire’s Mayor, Oliver Coppard, said: “South Yorkshire is at the forefront of a national industrial revival—and Rotherham is leading the charge. In Rotherham we’re seeing industrial strategy done right, delivering exactly what the country needs: higher productivity, stronger innovation and real economic transformation. 

“The results speak for themselves. Rotherham’s emergence as a place where productivity is growing almost quicker than anywhere else in the whole of the UK, is a testament to our advanced manufacturing sector and our success building the industries and jobs of the future. Our success won’t just benefit South Yorkshire—it’s a blueprint for how the UK can grow, compete and thrive. 

“From the site of the Battle of Orgreave 40 years ago, to a globally recognised hub for innovation today, Rotherham is national example of industrial strategy done brilliantly well.”

Cllr Chris Read, Leader of Rotherham Council said:

“This is welcome recognition of the progress we’ve made in Rotherham — one of the UK’s fastest-growing local economies. It’s a testament to the innovation, investment and skills that have driven our transformation over the past two decades. It also demonstrates the importance of strong public-private partnerships and upfront investment. Hidden in these figures are the real stories of large-scale land reclamation in the north of the borough, as well as the world’s first Advanced Manufacturing Park, which was only possible in collaboration with the University of Sheffield.

 “Of course, there remains still much to do to create the jobs and opportunities we want to see right across our borough. We’re forging ahead with the largest programme of physical regeneration for many years, improving our town centre as well as localities beyond. That includes progressing plans for a new train station, which would return mainline train services to Rotherham for the first time since the 1980s, alongside new homes and business premises, to ensure we continue to make progress over the next two decades.”

Lynda Shillaw, Chief Executive of Harworth Group plc said: 

“Harworth has invested in excess of £200m over more than two decades in the regeneration of the former Orgreave mine and coking works. Today’s findings underline the key role that Harworth has played alongside public sector partners to unlock regional economic growth, creating a thriving and sustainable employment community at the Advanced Manufacturing Park alongside the adjacent New Waverley community. 

“Our expertise as a master developer and flexible approach to funding development has supported skills, jobs, and growth for local businesses, globally recognised occupiers and higher-level academia. We are at the heart of regional growth in the UK and as a leading developer of industrial and logistics, we are investing in our next generation of sites from our 34.1m sq ft pipeline, much of which enables new employment hubs to be delivered at scale into the regions. We look forward to continuing to collaborate with the public sector and business to accelerate delivery jobs and opportunities to our regions, playing our part in driving growth and productivity for the UK and supporting the delivery of the Industrial Strategy”

Prof. Ben Morgan, Interim CEO of the AMRC, said:

“At a time when the Government has put advanced manufacturing at the heart of its 10 year plan for growth, this research shows the potent impact manufacturing, and in particular highly innovative manufacturing, can have to positively affect regional productivity, but more importantly people’s lives.”