'nigger' isn't (or should I say wasn't) nearly as offensive in England as it is here. It wasn't exactly a term of endearment so I'm not defending the kid in Manchester. Actually, as a kid I always thought nigger was someone from nigeria, just like an aussie from Australia. We use to also call black folk wogs, which use to be a term of endearment (Western Oriental Gentleman) but somehow ended up being extremely offensive.
I think with the Americanism of the UK, the 'N' word as it's known has become much more offensive thanks to Hollywood and rap music. (no, I don't blame rap for everything, just a co-incidence I mentioned it twice today) What I can't figure out is if it's such a nasty nasty word why does the black community call each other by that name all the time? You don't hear chinese people walking around yelling "Yo, my chink!" do you?