The Northern Ledger

Amplifying Northern Voices Since 2018

Prime Minister unveils £1bn regional innovation fund in Manchester

'Good growth in every postcode' was the line from the Prime Minister in Manchester as the government set out a plan to move some innovation money out of Westminster and into regional hands. In the gov.uk announcement released alongside the Innovation Nation speech, ministers said established mayoral authorities in England will receive dedicated later-stage research and development funding for the first time. For Greater Manchester and other northern city-regions, that is the part of the announcement that cuts through. After years of hearing that Britain has world-class research but too much of the decision-making stays in Whitehall and inside the London bubble, the government is now promising to let local leaders back the ideas, firms and sectors they think can grow on their own patch.

The wider package comes with a sizeable figure attached: **£1 billion** through UK Research and Innovation over the next four years for high-growth industrial clusters in the Industrial Strategy's priority sectors. The government says the aim is to back places with the research strength, skilled workers and business base needed to turn new ideas into successful companies. That matters in the North because the argument has never really been about whether places such as Manchester can generate ideas. It has been about whether they get the backing to turn university research, start-up know-how and manufacturing expertise into businesses that stay, hire and export from the region rather than drifting elsewhere for the next stage of growth.

Ministers say the new R&D funding will sit alongside Good Growth Funds, described as a single, flexible and longer-term growth budget for local leaders. In plain terms, the promise is more room to join up research spending with the practical ingredients of growth: sites, transport, skills, finance and the public institutions that can help a young business move from prototype to production. That is a more grounded way of talking about innovation than Westminster often manages. A lab breakthrough on its own does not create well-paid work in northern towns and cities. It needs space to expand, workers who can step into skilled roles and a combined authority able to make decisions without waiting for every nod from the centre.

There is also a clear political message in the way the plan has been framed. The government says too many decisions about regional innovation have been taken nationally and that places need more control over their own economic future. For readers across the North, that will sound less like a revelation and more like a late admission of what local leaders have been saying for years. The first formal step is aimed at established mayoral strategic authorities in England, with the existing Local Innovation Partnerships Fund due to be devolved to established mayors from **2028**. Ministers say this is only the start and that a larger share of later-stage innovation funding should follow over time, including in areas beyond the current mayoral set-up.

Manchester also sits at the centre of another part of the plan. The unit referred to by government as No.10 North is being asked to help forge new partnerships between innovation clusters across the UK, beginning with the Northern Growth Corridor and the Oxford to Cambridge Growth Corridor. The sectors named by ministers include life sciences, digital and technology, and advanced manufacturing. The case for that tie-up is straightforward enough. Regions should not be forced to compete in isolation when international investors are looking for scale. If the idea works, university research, business networks and public backing can be joined up across more than one corridor, helping promising products move faster from the lab to the market.

For northern businesses, the attraction is obvious. Too many good ideas still reach the same crossroads: raise money elsewhere, move south for the next stage of growth, or sell before the wider benefits are felt locally. The government's pitch is that Britain should not just discover the next generation of breakthroughs but develop, scale and commercialise them here as well. That ambition is easier to applaud than to deliver. Innovation policy only proves itself when it reaches beyond the city-centre conference hall and into supply chains, technical colleges, industrial estates and the smaller firms doing the hard graft behind the headline sectors.

The small print matters too. The Local Innovation Partnerships Fund commitment applies to established mayoral strategic authorities in England, while ministers say they will work with devolved governments and regional leaders in Scotland, Wales and Northern Ireland on how similar local control could spread further. The speech also ranged wider, touching on barriers to growth and a national mission to defeat dementia, but the regional funding shift was the part most likely to land directly with northern leaders. The government has wrapped the package into a bigger plan to reindustrialise Britain and keep more of the rewards from home-grown research in the communities where it begins. In the North, the test will be simple enough. If this money helps firms scale, keeps skilled jobs local and gives mayors real control rather than another branded pot, people will notice. If it does not, Manchester will have hosted another big speech and little more.

← Back to Latest