The Economy Scrutiny Committee met on Tuesday 8 September 2026 to discuss digital infrastructure and connectivity, the adoption of Artificial Intelligence (AI) by businesses, and the allocation of funding for employment and skills programmes. The committee recommended the development of a set of measurable digital inclusion and connectivity indicators. It was recommended that a future report to the Resources and Governance Scrutiny Committee in March 2027 should give consideration to the ethical use of AI and potential price rises in AI technologies. The committee endorsed the recommendations to the Executive regarding integrated settlement employment and skills programmes.

Digital Infrastructure and Connectivity – Progress Update and Future Priorities

The committee received an update on Manchester's progress in improving digital infrastructure and connectivity, noting that while significant investment had been made in fibre and mobile networks, challenges remained. Discussions covered the affordability of broadband, the adherence to the 'Dig Once' principle for infrastructure installation, and the impact of network pressures during major events. The committee was informed about initiatives to address digital exclusion, including partnerships with organisations like the Good Things Foundation and the development of a Digital Exclusion Risk Index.

The committee welcomed the offer of a further update in 12 months and recommended the development of a set of measurable digital inclusion and connectivity indicators. These indicators will include:

• The number of social housing properties without access to gigabit-capable broadband.
• The average and target timescales for processing wayleave requests, along with performance against those targets.
• The number of households accessing social broadband tariffs.

AI and Business Adoption in Manchester: Opportunities, Risks, Labour Market Change and Inclusive Growth

The committee considered a report on the adoption of Artificial Intelligence (AI) and its potential implications for Manchester's economy, businesses, workforce, and residents. Professor Richard Whittle, Professor of AI and Public Policy at the University of Salford, provided insights into the fast-moving AI sector, highlighting concerns about the commuter exposure disconnect and the potential for AI technologies to be priced out of reach for smaller businesses.

Key discussion points included the impact of AI on the city's inclusive growth ambitions, the Council's preparedness for potential increases in AI technology costs, and how AI is being addressed through skills programmes. The committee also explored the guidance needed from central government to facilitate AI adoption and ensure businesses can capitalise on emerging technologies. Concerns were raised about the impact of AI exposure on microbusinesses and the practical support available to employers for safe AI adoption. The committee was informed about initiatives to improve digital literacy among residents and small businesses, and the potential for AI-generated disinformation.

The committee recommended that a future report to the Resources and Governance Scrutiny Committee in March 2027 should give consideration to the ethical use of AI and potential price rises in AI technologies, as outlined in Professor Whittle's report.

Integrated Settlement Employment and Skills Programmes

The committee reviewed proposals for utilising £12.8 million of Integrated Settlement funding allocated by the Greater Manchester Combined Authority (GMCA) for employment programmes in Manchester up to March 2029. The report highlighted ongoing challenges with economic inactivity, health-related barriers to work, and inequalities in labour market participation. The proposed programmes aim to increase the number of residents supported by Manchester City Council-commissioned employment programmes from 12,600 to 14,800 per year.

The committee welcomed the proposed work and funding, with discussions focusing on the need to link these initiatives with Pride in Place Chairs, the significant impact of musculoskeletal issues as a barrier to employment, and the specific outcomes for disabled residents, those with long-term health conditions, and young people. Engagement with employers and an assessment of equality implications were also key discussion points. The Leader of the Council, Councillor Garry Bridges, introduced the report, emphasising work and skills as a priority for the Council.

The committee endorsed the recommendations to the Executive, which included approving Manchester City Council's receipt of the £12.8 million in funding from GMCA to deliver employment and skills programmes aligned with the Our Manchester Strategy. The proposals also include expanding existing successful programmes like WorkWell and Trailblazer, and introducing new initiatives such as the Worklessness Programme and Community-based Equity in Employment provision.

Overview Report

The committee received an overview report detailing key decisions within its remit, responses to previous recommendations, and the committee's work programme. The Governance and Scrutiny Support Team Leader provided updates on the deferral of transport-related reports and the addition of a report on progress against the Music in the City recommendations to the work programme.

The committee noted the report and agreed the work programme, subject to the noted amendments.