Chancellor pledges £660m for next phase of the Northern Powerhouse Investment Fund   

• The Chancellor has confirmed additional funding for Northern businesses in today’s Spending Review, marking a new generation for NPIF 
• The new £660m fund is announced as NPIF approaches the £300m mark 
• The next generation of NPIF will be focused on supporting businesses in every corner of the North 

Chancellor Rishi Sunak has announced £660m of government funding for the second Northern Powerhouse Investment Fund, to be delivered by the British Business Bank.

The Chancellor’s announcement builds on the success of the Northern Powerhouse Investment Fund which has helped address market gaps and regional imbalances in access to finance and which will continue to invest until December 2023. A collaborative approach will now begin with key regional stakeholders across the North and more information will be posted in due course. 

The news comes as the original NPIF approaches its £300m milestone, having directly invested over £291m into 937 Northern SMEs in deals that have attracted an additional £377m of private sector co-investment.

Launched in 2017, NPIF offers microfinance between £25,000 and £100,000, debt finance between £100,000 and £750,000 and equity finance up to £2m. NPIF supports almost one in five equity deals across the North.

The new fund is HMG funded and its design is subject to consultation with local stakeholders.

Catherine Lewis La Torre, CEO of British Business Bank, said: “Ensuring that investment reaches businesses of all sizes and in all sectors the UK – including Northern cities, towns and rural areas – is vital if we are to realise the goals of addressing regional imbalances.

“NPIF has been transformative for the Northern business community. We have consistently seen the impact that funding can have on organisations, whether that’s enabling them to build skilled teams, create new products and services, or adopt more sustainable operations – something that the Bank is driving through its commitment to supporting SMEs in reaching net zero. The next phase of NPIF will enable even more Northern businesses to adapt, innovate, and scale – ultimately creating an even stronger North.”