The UK government has introduced a £150 million initiative to boost growth among the most promising businesses in northern England, with support from the British Business Bank. The program targets innovative firms—including university spinouts, that show strong potential for expansion, offering grants of £5 million to £15 million each. Although the British Business Bank has secured the funding, no information about the application process has been shared yet.
A new initiative called Northern 500 was also unveiled, bringing together 500 mid-sized companies from the region under the leadership of the Great North Partnership of mayors. This effort combines resources from private investors and the government, aiming to strengthen collaboration and expand local businesses.
The funding aligns with a broader plan to double the number of UK unicorn firms. Chancellor John Healey described the move as a direct investment in the north’s economic future. Keith Griffiths, founder and CEO of The Entrepreneur Festival, said:
“£150 million is welcome but it won’t create northern growth if the government gets the allocation of the funds wrong. Backing fast-growing northern businesses is absolutely the right ambition, but government shouldn’t confuse writing cheques with creating growth. If this money simply follows the best-known names or whatever happens to be labelled ‘innovative’, we risk missing the businesses with the real potential to become the north’s next major employers.
Devolution only works if local leaders listen to the people who actually build and scale businesses. Experienced founders should be shaping where this money goes, not sitting on the sidelines while others decide what success looks like. That’s where the Northern 500 could be genuinely powerful. Put the people creating jobs, investing and scaling businesses in the room, and use their experience to work with government and local mayors on what businesses actually need. The north needs the power to back entrepreneurial talent wherever it is, including the businesses nobody has heard of yet. Give the north the money and the powers but trust the people who know how to grow a business to help decide where that investment goes.”
The fund’s design reflects past regional development efforts, where centralized decisions sometimes led to uneven results. Northern 500 aims to involve local mayors in shaping the initiative, potentially closing the gap between government policy and grassroots needs.
University spinouts, often key innovation drivers, will directly benefit from the funding. The new fund does not specify eligibility beyond innovation and scalability.
Northern 500’s effectiveness depends on whether the fund stays true to its objectives and if local entrepreneurs, especially founders, have real influence over funding decisions. The chancellor’s goal of doubling unicorn numbers signals a long-term strategy, but ensuring capital reaches the right businesses will be critical to success.
