Insider Media Limited

A lack of office space and housing are among the biggest concerns facing Manchester this year, the leader of Manchester City Council told Insider. Sir Richard Leese also claimed there has been a "complete failure of government to stimulate growth" but the Local Enterprise Partnership (LEP) has been working to fill this void.

Speaking to 350 members of the Manchester business community at the city centre's annual review of 2011/12, Sir Richard said it was vital that councils are given the "tools" to achieve growth.

He also said that after the local authority lost 2,000 jobs last year, the total number of jobs in the city is returning to pre-recession levels. However, because of a lack of new provision coming onto the market, office space take-up is not as good as in previous years.

He also said that there was a need for more residential accommodation in the city centre.

The Co-operative's NOMA project, which is due for completion in September, will provide 4,000,000 sq ft of office, retail, residential and leisure space.

David Pringle, director of Investment and Property Strategy at the Co-operative said that the company's overall investment was worth £800m.

Rowena Burns, chairman of CityCo and chief operating office at Bruntwood said the last year had been "tough" and the business community remained "cautious".

"We are especially proud of the business support we provide both during and after last August's riots. This period demonstrated the optimism, vibrancy and energy of the city when working collectively – one of our greatest assets."

"Working with our partners on the 'I Love MCR' campaign demonstrated our combined ability to bounce back and turn a crisis into an opportunity."

Sir Richard said he was "optimistic" for the outlook in 2012, due to the "collective goodwill" within Manchester's business community.