Manchester Runway 2: £9.5bn Boost to Northern Economy 2026

Key Points

• A new report that celebrates 25 years since the operation of Manchester Airport’s Runway 2 shows that the second runway is adding up to an annual contribution of £9.5 billion to the Northern economy.
• The report conducted by economic consultants Metro Dynamics in collaboration with the data analysis of WPI Economics establishes a connection between the runway and the rapid increase in foreign direct investments, international trade and almost doubling of North West firms trading internationally.
• Politicians and businessmen, such as the mayor of Greater Manchester, Bev Craig, and the chairman of Northern Powerhouse Partnership, Lord Jim O’Neill, appeal to the government to develop Northern Powerhouse Rail and spread the impact of the runway across the whole of the North.
• Ken O’Toole, CEO of Manchester Airport, states that airports are economic catalysts and calls upon the government to support the strategic development of infrastructure and tax reform to copy the success of Runway 2 elsewhere.
• Case studies from companies operating in Greater Manchester, Cheshire, Liverpool City Region, Cumbria, and Yorkshire, which have achieved success through international connectivity from Manchester Airport, were featured in the report.
• Manchester Airport can nearly double its passengers to 60.6 million passengers per year, as it

Manchester (Manchester Mirror) August 18, 2026 — A study released to mark the 25th anniversary of Manchester Airport’s second runway claims the infrastructure has “transformed” the Northern economy, delivering £9.5bn a year in economic impact and underpinning a wave of export-led growth across the region. The report, titled A Route to Growth for the North, argues that policy-makers must now capitalise on what it terms a “golden opportunity” to create a “super-connected global North” by completing transport links such as Northern Powerhouse Rail.

What economic impact has Manchester’s Runway 2 had on the North?

The study concludes that Runway 2, which opened in 2001 following a £172m investment delivered over four years, has helped turn Manchester Airport into a global gateway connecting the North to more than 200 countries representing 75% of global GDP. According to the report from Metro Dynamics, that connectivity has helped the North become a growing economy with clusters of high-value industries in its major cities, driving higher-value exports, rising student and visitor numbers, and increasing inward investment even as national levels fell over the same 25-year period.

Economic data analysis by WPI Economics, included in the study, shows Foreign Direct Investment into the North West grew by £6.7bn over the past decade despite a UK-wide decline, while global services trade value in the North West rose 48% between 2016 and 2023 to reach £59bn. The number of North West firms trading globally increased from 8,300 to 13,100 between 2011 and 2023, and the value of goods trade in the wider North grew by 66% between 2010 and 2025, compared with 50% in London.

How has Runway 2 changed trade, investment and university collaboration?

The report highlights a tenfold increase in global research collaborations involving the N8 group of Northern universities, rising to more than 70,000 over the 25 years covered. International visitor numbers to the North West have increased by 122% since 2022, the largest rise of any region outside London, while the North West accounted for 19% of all new commercial land developed in England between 2017 and 2022. Industrial land values in the North West grew 48% in the same period, the highest in England outside London.

Why do leaders call for Northern Powerhouse Rail now?

Political and business leaders reacting to the findings have urged Prime Minister Andy Burnham to press ahead with Northern Powerhouse Rail, arguing it would help Manchester secure more routes to key global markets and ensure all parts of the North benefit from the value generated by connectivity, particularly for high-growth industries reliant on global access.

As reported by the Manchester Airport media centre, economist and life president of the Northern Powerhouse Partnership Lord Jim O’Neill wrote in the report’s foreword that Manchester Airport is now “an asset that benefits more than Greater Manchester alone”, adding: “But that ambition needs to be matched by government investment in the transport links that connect the airport to the wider North.” He said the Northern economy was “showing consistent signs of economic momentum, yet the airport’s potential catchment remains beyond easy reach. Northern Powerhouse Rail is the mechanism that changes that.”

Lord O’Neill concluded: “If our new Prime Minister is to hit his target for UK growth, we need higher productivity overall, and that means closing the North-South divide. International connectivity can make a meaningful contribution to that, and in Greater Manchester’s case it already is. The missing piece is the railway that allows the rest of the North to fully share in those benefits.”

What do airport and regional leaders say about the runway’s legacy?

MAG chief executive Ken O’Toole said: “This demonstrates clearly that when the right conditions are in place to encourage long-term investment in strategic infrastructure, the benefits are transformational and can power a generation of growth and beyond.” He added: “Airports are not just buildings people pass through as they travel for work or leisure – they are a route to growth for regional economies – economic catalysts integral to our success as an island trading nation.”

O’Toole continued: “Investing in Manchester Airport’s runways and terminals required visionary leadership, a culture of public and private sector collaboration and an understanding that infrastructure investment not only creates jobs and value in the short term, but can change the economic trajectory of regions in the long term.” He warned that the UK’s overall performance on investment ranks poorly against other major economies and said the government has an opportunity to embed a policy environment that encourages key strategic investments across regions, including delivering Northern Powerhouse Rail and reforming business taxes.

Greater Manchester Mayor Bev Craig said: “Manchester Airport is Greater Manchester’s gateway to the world and one of the North’s great success stories. For 25 years, its second runway has helped connect our businesses, universities and communities to global markets, and has played a major role in our city-region’s reinvention.” She added: “Now we need to make sure more people and places share in that success. Northern Powerhouse Rail, including a high-speed station at the airport, would cut journey times, open up access to jobs and opportunities, and help unlock the North’s full potential. That is the investment our region needs – and the case we will keep making.”

VisitBritain chief executive Patricia Yates said: “Manchester Airport is a gateway to the North and a major driver of tourism growth across regional Britain.” She added that by connecting international business and leisure visitors with destinations across the North, the airport supports local businesses, jobs and spending in communities far beyond its own doorstep, while positioning the North as a world-class destination for leisure, study, trade and investment.

Which businesses credit the runway with their global growth?

The report includes case studies from exporters and service firms across the North. In Greater Manchester, life sciences firm Qiagen has grown from 60 employees in 2009 to more than 250, selling into 170 countries; site head Julia Buckler said the airport is “essential for keeping those connections going”. Expo Stars Interactive founder Lee Ali said international connectivity is “essential for northern businesses with global ambitions” and that Manchester Airport enables companies to build relationships and export expertise without travelling through London.

Seda Pharma Development Services co-founder Marcel de Matas said more than half of its revenue comes from exports, making international connectivity “critical to our continued growth”, while packaging manufacturer Duo’s brand director Zoe Brimelow said the airport helps the firm stay connected with customers and suppliers globally as exports account for 15% of sales. Maritime security trainer VIRSEC co-founder Cathy Wallwork said exporting has been “fundamental to our growth” and that Manchester Airport serves as the gateway enabling quick client meetings and conferences worldwide.

In Cheshire, Hydraulics Online co-founder Helen Tonks MBE described Manchester Airport’s long-haul routing as a “gamechanger” for operating on a global stage, while life sciences marketing specialist The Scott Partnership chief executive Kath Darlington MBE said: “We always used to say we don’t need to be near to London but only to Manchester Airport.” In the Liverpool City Region, Spice Kitchen’s Sanjay Aggarwal said the airport provides a gateway to meeting buyers and building export relationships, and Ki Partnerships founder Paul Kallee-Grover MBE said it is “often the first step in turning an international introduction into a trusted relationship”.

In Cumbria, aerospace and defence manufacturer Oxley Group head of marketing Jayne Moorby MBE said access to global markets allows northern manufacturers to attract investment and create skilled jobs while remaining rooted in the North, and in Yorkshire, engineering firm The International Group CEO Emma Parkinson said connecting the North to the world means building on Sheffield’s industrial heritage while demonstrating advanced British manufacturing has a powerful global future.

How much further can passenger numbers and capacity grow?

Manchester’s two runways mean the airport still has the potential to nearly double passenger numbers from the current 32.3 million, more than twice the number added since Runway 2 opened, according to the report. Report authors say this reflects the untapped potential of the Northern economy as a whole.

Background to the development of Manchester’s second runway

Manchester Airport’s Runway 2 opened in 2001 as part of a response to deep industrial decline across the North that had seen its home city lose one in four jobs in the preceding decades. The £172m investment was delivered in just four years from approval being granted, and over the following 25 years the airport evolved into a global gateway with connections to more than 200 countries. The latest report, commissioned to mark the 25th anniversary, brings together economic data, business case studies and policy analysis to assess the runway’s long-term impact and to set out recommendations for future infrastructure and policy.

Prediction: how could this development affect businesses, workers and residents in the North?

If policy-makers act on the report’s recommendations, particularly by delivering Northern Powerhouse Rail and related transport reforms, the development could affect businesses, workers and residents in the North by widening access to the airport’s global connectivity beyond Greater Manchester, enabling more firms in neighbouring regions to export, attract foreign investment and recruit internationally. For workers, improved rail links could open up access to higher-value jobs in aerospace, life sciences, digital and advanced manufacturing clusters that rely on global supply chains, while residents could benefit from increased tourism spending and a broader range of direct flight options as the airport moves towards its potential capacity. Conversely, if complementary infrastructure is delayed, the report implies that the economic benefits of Runway 2 may remain concentrated around the airport’s immediate catchment, limiting the wider regional productivity gains that leaders say are needed to close the North-South divide.