Rochdale Development Agency Leads National Project with The Productivity Institute to Revolutionise

Posted by on 25 Nov 2024

Rochdale Development Agency and the world-class Productivity Institute at the University of Manchester are at the forefront of an innovative approach to economic development, partnering to create a landmark set of metrics to assess the long term impact of policies at the local borough level.

By measuring success through a unique ‘capitals’ framework, encompassing social, human, financial, and physical resources, Rochdale Council is moving beyond traditional metrics in its work to understand how its Development Agency can build a thriving, inclusive borough, creating a model for other places to follow.
 
The work is completely aligned with the government’s strategy of creating inclusive growth. 

Following the memorandum of understanding (MoU) signed between Rochdale Development Agency and The Productivity Institute in 2023, the ‘capitals’ approach helps the Council and its development agency to get a better understanding of how development policy can be targeted to improve the Borough.

The framework considers a range of capitals. For example, social capital reflects the strength of local networks and community trust; human capital covers access to education, skills, and health; financial capital represents economic resources and opportunities for growth; and physical capital includes infrastructure like housing and transport. By considering Rochdale’s relative performance in these areas compared to elsewhere in Greater Manchester and the UK, Rochdale can focus its efforts to enable residents and businesses to thrive.

This approach is a significant and bold step by Rochdale Council and the RDA, showing a steadfast commitment to affecting real change. This pioneering and forward thinking approach is something, which Rochdale prides itself on, and over the past five years, significant developments have taken place, most notably the launch of the Atom Valley Mayoral Development Zone.

Rochdale is one of the few councils in the country to have a dedicated economic development agency and their investment has been a success story achieving £14 of investment for every £1 spent*.

The capitals framework provides a set of metrics to assess the longer term impact of such investment on the economic prosperity and well-being of the residents of the borough.

Councillor Neil Emmott, Leader Rochdale Council:
“In 2023, Rochdale Development Agency (RDA) signed an MoU with The Productivity Institute to pioneer an approach that truly redefines how we measure productivity. Through this partnership, Rochdale has become the first area in the UK to pilot the Capitals Framework, a ground-breaking method to assess how different forms of capital – social, human, financial, and physical – contribute to the wellbeing and future outcomes of our community. This initiative underscores Rochdale Council’s commitment to innovation, moving beyond standard practices to focus on what really matters to residents. With this approach, the Council and RDA can make strategic, impactful interventions that enhance life for everyone who chooses to live, work, and grow in Rochdale, Heywood, Middleton, and the Pennines. We are determined to ensure that our Borough remains an outstanding place to grow up, get on and grow old”

Professor Philip McCann, The Productivity Institute and the University of Manchester, Specialist in spatial economics and economic geography
The Productivity Institute at the University of Manchester has been working alongside the Development Agency in Rochdale on articulating a long-term strategy for local economic development. The stakeholders in Rochdale are at the forefront of current thinking, drawing on leading-edge approaches and international best practice in framing their analysis and responses. These approaches are aligned with the high-level thinking-taking place both in central government and in the wider investment community. As such, the Rochdale approach provides a template for how to ‘Go Big and Go Long’ in economic development arena, and also how other communities are able to learn from this type of approach”.

The report on this pioneering project, ‘Framing a place-based investment strategy for Rochdale’ is available at here

For further details on the report please contact: theproductivityinstitute@manchester.ac.uk