Manchester has recorded the steepest decline in living standards of any major English city from 2021 to 2023, with residents’ purchasing power plummeting by seven per cent. This decline starkly contrasts with the national average drop of 4.7 per cent, highlighting significant economic challenges in the region.
The analysis by the Resolution Foundation reveals that real disposable income per person in Manchester is now lower than it was when Andy Burnham took office as mayor in 2017. This raises questions about the effectiveness of local governance in addressing economic disparities, especially as Burnham positions himself as a potential national leader.
The report attributes Manchester’s decline to weaker productivity growth and the aftermath of the Covid pandemic, which saw the unwinding of government support measures like the furlough scheme. As inflation outpaced income growth, many residents faced a significant erosion of their financial stability.
Despite this recent downturn, Manchester has historically shown strong long-term income growth. However, the findings underscore the urgent need for substantial investment in infrastructure and economic development to prevent further widening of regional inequalities, a challenge that Burnham must confront if he aims to fulfill his ambitions for the city.
Source: GB News
