UK unveils £150M fund to back scaleups in the north of England
What's the deal? The UK government has unveiled a £150 million fund to invest in university spinouts and fast-growing businesses across the north of England. Chancellor John Healey announced the allocation from the British Business Bank, the government-owned economic development bank. The fund will make investments of between £5 million and £15 million in the "most innovative and fast-growing firms."
Why now? The government is looking to spur growth outside London, aiming to help the UK's city-regions match economic performance seen in France and Germany.
What's the endgame? Announcing the fund at the Manufacturing Technology Centre in the Midlands, Healey said: "London — of course — is our powerhouse. But if our city-regions could emulate the success of those in France or Germany, growth in our country would be transformed."
He pointed to Britain's "growth corridors," including the Oxford-Cambridge Growth Corridor and the Northern Growth Corridor, adding that the government wants to "get behind the most innovative and fast-growing firms."
The fund forms part of prime minister Andy Burnham's broader plans to stimulate growth outside the capital. The government hopes it will draw further private investment into northern businesses.
The signal: The allocation reflects a push to redirect state-backed capital toward regional startups and spinouts, testing whether public money can seed private investment beyond London.
Read more: Tech.eu
Image credit: Generated with Gemini
