Manchesterism in action: the rise and rise of Manchester Airports Group

Written by Phelim Bolger and Max Fieguth

 Key insights

• Prime minister Andy Burnham wants the public sector and private investors to cooperate and invest into economically invigorating infrastructure projects around the UK – a concept broadly called ‘Manchesterism’.
• Success in such public-private partnerships heavily depends on all parties aligning around the key values that support the project, agreeing on a long-term vision and defining the objectives to achieve it.
• Well planned and executed projects can yield significant commercial and social successes. Manchester Airports Group offers an example.
  
  

Ask members of the public what they know about Andy Burnham, the new prime minister of the UK, and his previous job as mayor of Manchester is likely to be among the first things mentioned. Better informed voters may also reference Burnham’s desire to economically empower regions across the UK through a concept he calls ‘Manchesterism.’

For nearly 30 years an entrepreneurial Manchester City Council has developed partnerships with private sector entities to regenerate the City and deliver economic growth. These include the expansion of its Metrolink light-rail network, the launch and growth of the Bee Network of public buses and trams, increasing Manchester’s supply of social housing, plans to add train lines, several upgrades to Manchester Piccadilly station, and a major investment to modernise and expand Manchester airport.

These efforts appears to be paying off; The Productivity Institute estimates that Manchester’s Gross Value Added (GVA) per hour, which measures the net value of goods and services in an economy, rose by 42% between 2015 and 2023 – making it the most productive large English city outside of London.

Manchesterism is an idea worth emulating but it can be challenging to bring public and private organisations together in a timely, cost-efficient manner. We believe public bodies and private investors seeking to execute cooperative infrastructure projects require an inspiring vision and agreement on the specific objectives required to deliver it. But most importantly, they need to have shared values.

Shared values are vital because successful infrastructure development plays out over many years, with public bodies and private partners developing and co-owning the infrastructure throughout the operational phase. To succeed they need to share beliefs, build trust and bring complementary skills to the partnership. They should also maintain a clear and regular dialogue, whether that is across day-to-day activities or when unexpected developments require course corrections.

Partners with the same values tend to have a firm base from which to agree on a vision. Public officials and their private partners need to align on what they genuinely want to accomplish, be it a world class airport, or an ultra-modern light rail network. This vision should ideally be clear, bold and inspiring – something that can inspire the community and bolster the local economy as well as benefiting investors. That can make it more likely to be achieved.

Once the vision is in place, the partners need clear objectives from the outset to deliver it. These may include concrete goals, such as doubling the capacity of the airport in five years or building a 10-stop light rail line in three years. Other objectives may cover capital commitments from the public and private investors, clear governance processes and clear delivery dates for key project stages. It may also encompass socially important steps such as agreements to source most of the construction or service work from local businesses, or for the operators to provide a certain number of apprenticeships to the local community.

Manchester Airports Group’s momentum

One key factor that often holds back public-private partnerships is a bias for short-term goals. Many private investors focus on securing short-term gains, while public bodies often find their plans constrained by four- or five-year electoral cycles. However, a far-sighted public authority working with a patient investor with access to long-term capital can help offset these pressures if they can align around shared values, articulate a bold and exciting vision and possess clear objectives.

The UK government’s focus on devolution offers an opportunity to build such alliances. Regional authorities are being actively encouraged to follow Manchester’s example and invest in long-term renewal projects that can benefit their communities and economies. New public-private organisations are likely to be central to such efforts.

Manchester’s own experience demonstrates that it is worth public authorities taking the time to find the right investment partner. A key example can be seen in Manchester Airports Group (MAG).

MAG was established in 2001 as the owner of the eponymous airport, and in 2013 Manchester City Council (MCC) and nine district councils took the bold decision to bring in an experienced private infrastructure partner to help improve the commercial potential of the airport. They selected a fund advised by IFM Investors (IFM), as a co-owner.

IFM offered several appealing traits to MAG. First, it is a patient infrastructure investor, managing open-ended investment funds in addition to closed-ended funds. This allows it to invest over decades rather than a compressed period, as part of its remit seeking to protect, invest and grow the retirement savings of working people. IFM-managed funds also had experience supporting Australian airports operationally, in partnership with public authorities. Those capabilities offered an appealing complement to MAG’s airport operating expertise, while IFM’s heritage complemented MCC’s desire to develop and operate MAG over a prolonged period to the benefit of the local community.

Over the past 13 years MAG has enjoyed success moving from a single regional airport serving the Northwest of England to a UK-wide group also owning London Stansted and East Midlands airports. It is concluding a £1.5 billion transformation programme that should expand Manchester airport’s passenger capacity from 32.1 million in 2025 to 47 million a year. The modernised facilities are helping to attract more business and tourism to the city, improving the experience of local users, and providing jobs and economic opportunities for the surrounding area.

The IFM-managed fund’s acquisition of a stake in MAG also enabled the company to acquire London Stansted Airport, creating a larger company that benefits from economies of scale. MAG has since looked to repeat Manchester airport’s success at Stansted and is currently planning to execute a £1.1 billion investment programme that is set to increase the airport’s annual passenger capacity to more than 43 million. It also owns East Midlands Airport, which has enjoyed efficiencies from being part of a larger airport group.

These expansions and acquisitions underscore how IFM’s engagement with MAG has helped it to build long-term value and become the UK’s largest airport group. Over 66 million people travelled through MAG’s airport terminals in the year ending March 2026, and it estimates its annual economic impact to be £14 billion.

Above all, MAG represents the possibilities of Manchesterism; the potential for entrepreneurial public bodies to ally with a patient, experienced infrastructure investor to modernise and expand an aging transportation asset over an extended period, greatly increasing its size and commercial value to the benefit of the surrounding region, taxpayers and investors alike.

Like Burnham, we believe many UK regions could benefit from visionary public officials working closely with experienced private investors to help deliver much-needed infrastructure. IFM hopes to continue playing an active role as the UK government seeks to replicate Manchester’s economic success across the country.

For over 20 years, IFM Investors has played an integral role in helping to strenghten the UK’s critical infrastructure by investing patiently and at scale – contributing to UK growth and supporting local communities. Read more about IFM Investors’ work in the region here.

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