Commercially Minded | Manchesterism, defence and the future of UK growth

For decades, Britain's economic debate has been framed as London versus the rest. That framing has shaped where capital is deployed, where talent congregates and, by extension, where real estate demand takes root. The appointment of Andy Burnham as the new UK Prime Minister signalled to some a potential shift away from this framing, and towards “Manchesterism”. The government’s recent announcement of “the biggest transfer of power from Westminster in a generation” seemingly confirms this as Burnham’s direction of travel. So what is Manchesterism, and what does it mean for the UK growth agenda?

Defining Manchesterism

The term is used in two ways: as a description of the policies that shaped Manchester's economic growth, many of which pre-date Burnham, and as shorthand for his broader UK economic vision. Manchesterism, at its heart, is about devolution: giving greater control to local authorities on areas that drive economic growth, from infrastructure to skills. Manchester has developed its own technical training pathway aligned to the needs of local employers, and used public money through the Good Growth Fund to kickstart regeneration schemes on the premise that private investment will follow. Long-term vision is central, because it is that long-term vision that gives businesses the confidence to invest, and that confidence is what ultimately shows up in real estate commitments on the ground.

Devolution as connection, not competition

The more valuable framing of devolution is joining strengths rather than dispersing them. Devolution need not be a zero-sum game, but rather is about understanding the unique strengths of each region and joining the dots to build clusters around the UK. For example, Cambridge and Manchester, led by their universities, have partnered to benefit from a joined-up approach: Cambridge with its strengths in R&D, Manchester with a deeper industrial base and fast-growing capability in genomics and healthcare data.

Defence: distributed by geography, diverse by asset class

Defence is one of the clearest examples of how devolution and industrial strategy can work together. Two-thirds of UK defence jobs sit outside London and the South East. Maritime clusters around Plymouth, Portsmouth and coastal Scotland; developers of autonomous systems are growing in Wales and the South West; cyber is anchored around Cheltenham with emerging activity in the North West.

Modern warfare has shifted towards rapid production of technologically led hardware and software, with dual-use technologies combining defence with semiconductors and AI. For real estate, the implication is that defence investment will not land in one sector or one location. Alongside the factories and heavy industry that remain part of the picture, the plan also requires labs, offices, data centres and the energy provision to power them.

Barriers to overcome

Transport, power, skills and venture capital access remain the main constraints. Northern Rail infrastructure has long been predicated on reaching London, rather than connecting northern cities to each other.

Power requirements for data centres, advanced manufacturing and even office space are growing, and the grid needs heavy investment. If the transport model that worked in Manchester can be rolled out nationally to connect northern cities, it would unlock a greater pool of talent and act as the underpin for business growth in the main city centres.

Looking ahead, the more interesting question is not whether to spread growth, but how to connect the places where it is already taking root, a question that now sits at the heart of national policy.

Listen to the latest episode of Commercially Minded for a grounded discussion on devolution, defence and the future of the UK's regional economies. Follow the podcast for monthly insights here, and subscribe to Will's newsletter for a weekly take on commercial real estate markets.