Northern Powerhouse Investment Fund II drives regional business growth

An independent evaluation of the Northern Powerhouse Investment Fund II (NPIF II) indicates the fund is successfully addressing regional finance gaps for businesses in Northern England. An assessment by SQW Ltd for the British Business Bank found that the fund supports smaller businesses that often struggle to secure traditional investment.

By May 2026, the fund had facilitated nearly £275 million in investment for more than 400 businesses. The largest number of supported companies were in the information and communication sectors, followed by professional, scientific, and technical activities, and manufacturing. These sectors align with the North East’s strengths in advanced electronics, space, defense, life sciences, and advanced manufacturing.

Experts note that access to capital is vital for turning research and innovation into commercially viable products. For the North East to transition its industrial heritage and academic research into a sustainable innovation economy, businesses require timely finance to scale, develop new technologies, and create skilled employment within the region.