New Government fund will drive forward Northern Powerhouse

As part of the Industrial Strategy’s aim to improve productivity and create better and higher-paying jobs across the UK, the government will:

•  Work with industry to boost spending on R&D to 2.4 per cent of GDP by 2027, which could increase public and private R&D investment by as much as £80 billion over the next 10 years.
•  Launch a £1.7 billion Transforming Cities Fund that will improve transport links and promote local growth within city regions, placing cities at the heart of our industrial strategy.

The investment will see public R&D spending increase as a share of GDP for each of the next five years and bring investment to levels last seen in the 1980s.

Next Monday the launch of the Industrial Strategy White Paper will announce four Grand Challenges that reflect global trends that will shape our future and industries where the UK has an edge:
•  artificial intelligence and the data economy;
•  clean growth;
•  healthy ageing; and
•  the future of mobility.

The government will work with business, academia and civil society to build on UK strengths in these areas and ensure Britain’s economy is fit for the future. The Business Secretary will set out more detail on these Grand Challenges next week.

The Transforming Cities Fund will address weaknesses in city transport systems in order to raise productivity and spread prosperity. It will fund new local transport links, making it easier to travel between often more prosperous city centres and frequently struggling suburbs.

This will help make sure people across the country have better options to combine different modes of transport – supporting projects which will improve connectivity, reduce congestion and introduce new mobility services and technology.

The Secretary of State for Transport, Chris Grayling said:

“Investment in transport is crucial to a strong and resilient economy. The Transforming Cities Fund will drive productivity and growth in cities where this is most needed, connecting communities and making it quicker and easier for people to get around.

“We have already seen the impact of better integrated transport links for both passengers and the local economy in cities like Nottingham and Manchester. This new fund will enable more English cities to reap these benefits, helping to deliver the opportunities and ambition of the Industrial Strategy across the country, as well as driving forward the Northern Powerhouse and Midlands Engine.”