I’m in the same boat as you right now — I’m torn between Liverpool and Durham. Durham is more prestigious and better for English Literature, but I found that Liverpool has better accommodation and modules. The truth is, I do think prestige matters with degrees like English Literature because it’s one of those subjects. However, I’d really advise checking out the individual modules. You’re going to be there for three years, so make sure you like what’s available. I know medieval literature is a required unit at Manchester, which turned me off immediately. Some Russell Groups aren’t that progressive in terms of what they offer for literature. If you really love classics and very obscure texts that’s fine (I don’t mind it but three years of it might make me loathe the subject more than I love it!) but compare the modules for both and figure out which would interest you.
Of course way up everything else, but I’m sure employers would account for far more than the establishment name on your degree. If you’re a better candidate and answer interview questions in a more desirable manner, being a ‘Russell Group’ will be of little priority. Russell Group unis are really just research intensive at the end of the day and it’s only a label - prioritise your own preferences over what you think would look better.