Rachel Reeves has unveiled a £2.3billion package of City Investment Funds, with around three-quarters of the total allocated to northern England’s major metropolitan areas.
The announcement, made during the Chancellor’s Mais lecture earlier this week, will see up to £1.7billion distributed to regional mayors across Greater Manchester, West Yorkshire, the North East, Liverpool City Region and South Yorkshire.
The funding package includes grants, loans and patient capital aimed at accelerating city centre development and increasing housebuilding.
Ms Reeves said: “For too long the North has been sidelined, denied investment and had its potential held back.”
She added: “Backing its industrial strengths like Manchester’s thriving digital sector and Sheffield’s cutting-edge defence manufacturing will boost the region’s economy and place it at the centre of our national growth.”
A central component of the investment is the Manchester Digital Campus, which is set to receive hundreds of millions of pounds to redevelop a brownfield site in the Ancoats district.
The site is expected to house 8,800 civil servants and ministers, creating a major Government presence in the North West while consolidating existing estate.
Greater Manchester mayor Andy Burnham said: “The Manchester Digital Campus will put us among the world’s top tier of tech cities, creating high-value jobs for our residents and opportunities for our businesses.”
He added: “We’re ready to work with Government to deliver the project as we bring about a new decade of good growth in Greater Manchester.”
Chancellor Rschel Reeves has unveiled a £2.3billion City Investment Funds boost for the North
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Greater Manchester is already home to one of Europe’s fastest-growing digital economies and the largest artificial intelligence workforce outside London.
Meanwhile, Liverpool City Region will receive £51million to establish a National Cryogenics Facility at Daresbury, aimed at strengthening the North West’s role in ultra-low temperature research.
The facility is expected to attract investment from companies in quantum computing, healthcare and fusion energy, while supporting skilled jobs and research capacity.
Steve Rotheram said: “Backing projects like the new national cryogenics facility at Daresbury puts us right at the forefront of the global quantum race, bringing high-quality jobs and investment into our area.”
The region will also receive £30million through a Local Innovation Partnerships Fund focused on materials chemistry, infection prevention and artificial intelligence.
Andy Burnham said the Manchester Digital Campus would put the city among the world’s top tier of tech
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PASouth Yorkshire is set to receive £50million through a Defence Growth Deal to support the development of advanced materials used in next-generation military technologies.
The region has an established reputation for producing specialist materials, including steel used in defence and nuclear applications.
Oliver Coppard said: “The confirmation of £50million for our Defence Growth Deal is a huge vote of confidence in the work we do here in South Yorkshire and our contribution to the security of this country.”
He added: “For too long, South Yorkshire and the wider North have been failed by a lack of investment in our people, our businesses, our ideas and our infrastructure.”
Mr Coppard continued: “But slowly, surely that’s changing.”
Manchester is set to recieve £175million
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The investments form part of the Government’s Northern Growth Strategy, with a broader plan expected in the autumn following consultation with mayors, local leaders and businesses.
Speaking during her Mais lecture at Bayes Business School, Ms Reeves outlined three priorities for economic growth, including strengthening regional economies, advancing artificial intelligence and innovation, and improving trade links with the European Union.
She said in a more uncertain global environment, sustainable growth would depend on increased public and private investment supported by an active and strategic state.
The City Investment Funds are intended to enable regional leaders to accelerate development projects, expand housing and commercial space and deliver regeneration schemes across northern England.