Rochdale part of national project to "revolutionise" local area productivity measurement

Rochdale is at the forefront of a pioneering initiative to transform how local economic development is assessed across the UK.

In collaboration with The Productivity Institute at the University of Manchester, Rochdale Development Agency (RDA) is spearheading the use of a ground-breaking "capitals" framework, designed to evaluate the long-term impact of local policies on community well-being and economic prosperity.

The partnership, formalised in 2023 through a memorandum of understanding, positions Rochdale as the first area in the UK to trial this innovative model.

Unlike traditional economic metrics, the framework examines various forms of capital: social, human, financial, and physical.

This comprehensive approach provides a nuanced understanding of the borough's strengths and areas for improvement, enabling strategic interventions to support residents and businesses alike.

Councillor Neil Emmott, leader of Rochdale Council, highlighted the significance of the project, saying the initiative redefines productivity measurement. He said: "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 contribute to the wellbeing and future outcomes of our community."

He emphasised that this forward-thinking approach allows the council and RDA to focus on what matters most to residents, ensuring that Rochdale remains "an outstanding place to grow up, get on and grow old."

The capitals framework evaluates:

• Social capital: community trust and local networks
• Human capital: access to education, skills, and health
• Financial capital: economic resources and growth opportunities
• Physical capital: infrastructure such as housing and transport

By comparing Rochdale's performance in these areas with other parts of Greater Manchester and the UK, the council can better target its development strategies.

Professor Philip McCann, an expert in spatial economics at The Productivity Institute, praised Rochdale's leadership in adopting these methods. He said: "The stakeholders in Rochdale are at the forefront of current thinking, drawing on leading-edge approaches and international best practice. This approach provides a template for others to learn from."

Over recent years, Rochdale has embraced ambitious development projects, including the launch of the Atom Valley Mayoral Development Zone, which aims to drive regional growth. RDA's track record has been described as a success, reportedly generating £14 of investment for every £1 spent.

The capitals framework now offers a way to assess the longer-term impact of such investments on residents' lives.

Rochdale is one of the few councils in the UK with a dedicated economic development agency, reflecting its commitment to innovative and inclusive growth. While the project is still in its early stages, it represents a bold step forward, not just for Rochdale, but potentially for communities nationwide looking to adopt more holistic approaches to economic development.