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The plan for a Bank Of Manchester comes as the new coalition government looks for ideas for Local Enterprise Partnerships to be based around new economic geographies, including city regions.

In his discussion paper, seen by Insider, Ashcroft claims the city’s political and executive leadership has committed to boosting the levels of business in Greater Manchester, and increasing the number of entrepreneurs living and working in the city.

“This means creating the right environment for entrepreneurs to flourish.

Feedback from firms however suggests that they are experiencing difficulties accessing (affordable) finance in the current economic climate,” he argues.

“As the economy emerges from recession, access to growth capital may become even more difficult. Pro Manchester has agreed to undertake a study and review programme in this area as part of the Commission for the New Economy Discussion paper series.

His objectives include: “Review the opportunity for a local authority Bank of Manchester loan fund meeting early stage investment and loan opportunities.”

And: “Review the opportunity for a VC Ingenuity Fund, as a private sector venture capital fund initiative supported and funded by Pro Manchester member organizations.”

Since his appointment in October 2009 Ashcroft has developed a number of active networks with the financial and professional community. Notably the Manchester Private Equity Group (MPEG) designed to better focus the efforts of Manchester’s private equity professionals on local strategic objectives and to stimulate new investment opportunities.

A series of meetings and consultations will now take place throughout September and October with potential investors, fund managers and civic leaders taking the lead on different elements of the plan. Those hosting workshops include Deloitte, KPMG, Altium, Ford Campbell, Adam & Co, Manchester Business School and Zeus Private Equity.

Insider comment: Though this is early days, there is a strong willingness for Manchester's mature and forward thinking civic and professional leaders to consider radical ideas to promote economic development in a city region context. It is also fair to say that the plan for a Bank of Manchester gives added ballast to plans for a Local Economic Partnership. The thoughts of John Ashcroft are a welcome contribution and display a degree of ambition way beyond that which has become expected of his organisation.