Northern Powerhouse Investment Fund supports thousands of skilled jobs across the North, report finds

Evaluation shows how the fund is helping to shape a stronger North

Since its launch in 2017, the Northern Powerhouse Investment Fund (NPIF) has increased productivity, employment and skills across the North, a report by independent research company SQW has found.

Jobs, skills and R&D increases

The analysis surveyed 274 SMEs that have benefited from NPIF funding, and has revealed that 73% had increased workforce skills, and 62% had reported additional investment in research and development. In addition to this, 6,071 new high-quality jobs have been created through the fund – almost 1,000 more than originally planned.

Environmental and health benefits

This report (.pdf - 2.2mb) analysed the impact of NPIF across the North, including the success of businesses that have received funding. It found that for 68% of surveyed businesses, the NPIF investment had funded the development of new products or services. Of these, 48% said their innovations would reduce carbon emissions, 52% said that they would lead to broader environmental benefits, and 42% said they would improve health or the delivery of health services.

Business resilience, confidence in raising finance and increased valuations

NPIF investment also led to increased business resilience for 92% of businesses, and 87% said that they had greater confidence in their ability to raise finance from private sector sources in future. Of those surveyed, 45% of businesses went on to secure follow-on funding from sources other than NPIF, totalling over £63 million* or an average of £540k per firm. Meanwhile, 86% of equity recipients saw an increase in their company valuation.

Turnover increases and a growing business community in the North

In addition to this, 74% of businesses saw an increase in sales with the help of NPIF funding, and the investment encouraged 36% of respondents to keep their business in the North. NPIF has also been promoting diversity in business leadership with 71% of NPIF-funded businesses having mixed gender senior management teams.

NPIF provides equity, debt and microfinance to businesses in the North West, Yorkshire and Humber, and Tees Valley regions. To date, NPIF has made 1,324 investments into 983 companies totalling £318 million to the end of January 2022. The Fund has also generated an additional £437 million in private sector leverage, boosting the overall impact on Northern SMEs.

Manchester-based developer and software provider to the legal sector, Summize, is one example of a business that has benefitted from NPIF funding. The business completed a £1 million funding round led by NPIF – Maven Equity Finance in December 2020 and used the funding to invest in its talent and SaaS product offering. It has since gone on to grow its team by over 80 per cent.

Castings Technology International (Cti) is another business that secured a £2 million fundraising. Round led by Nucleus Commercial Finance and NPIF – Mercia Debt Finance. Based in Rotherham, the manufacturing and technology business has expanded rapidly, investing further into product development, sales and marketing.

Tees Valley utilities firm Everflow secured a £750,000 investment from NPIF – FW Capital Debt Finance in April 2021 and has since grown significantly. In 2021 alone, the group made 55 new hires and turnover rose to more than £75 million, a 35 per cent annual increase. The business has since announced plans to make 30 new hires in 2022 as it continues to scale its operations and customer base.