At Autumn Statement 2015, the Chancellor announced an agreement between the British Business Bank and Local Enterprise Partnerships in the North West, Yorkshire & the Humber and Tees Valley to create a Northern Powerhouse Investment Fund of over £400m, subject to meeting European funding requirements.
The Northern Powerhouse Investment Fund will produce greater levels of investment, increase the focus on the potential opportunities across the Northern Powerhouse regions and provide increased flexibility in the type of funding provided. Together these will contribute to better economic outcomes for the regions’ businesses, growth and jobs.
The British Business Bank is investing £50m of its own capital into the new fund, which is being matched by an additional £50m from the European Investment Bank. Bringing allocations together into larger funds allows more resources to be targeted at businesses with growth potential across a wider area, with economies of scale meaning more money can be invested directly in smaller businesses.
The British Business Bank has worked with LEPs from the North West, Yorkshire & the Humber and Tees Valley, and with the Department for Communities and Local Government to aggregate the European Regional Development Fund money they receive for the LEP areas into a combined fund which addresses gaps in access to finance identified by local areas funds. The Northern Powerhouse Investment Fund area is shown in light blue on the map on the right.
NPIF was officially launched in February 2017.