The Northern Powerhouse Investment Fund (NPIF) has supported the creation of over 6000 new, high-quality jobs across Northern England, new research by SQW has found.
Backed by the European Regional Development Fund (ERDF) and managed by the British Business Bank, the fund launched in 2017 with the aim to support business growth in the region and drive private sector investment into Northern SMEs.
SQW surveyed 274 SME recipients of NPIF support, finding 73% had increased the skills of their workforce, and 62% had invested additionally into research and development. Businesses backed by the fund had also created 6,071 new high-quality jobs as a result of investment, exceeding the NPIF’s target by over 1,000.
In addition to creating jobs, NPIF backing was also found to increased the resilience and confidence of businesses in the region: 92% reported increased resilience, and 87% said it increased their confidence to secure private financing. 45% of businesses surveyed also secured follow-on investment privately, worth £63 million.
Catherine Lewis La Torre, CEO at British Business Bank, said:
“We are extremely proud of the positive economic impact that the Northern Powerhouse Investment Fund has had on the North over the past five years. This evaluation shows that we’ve supported a wide range of businesses in every corner of the North, from rural agriculture and environmental businesses to fast-growing manufacturing and technology companies based in urban areas.
“This investment programme has been highly successful due to the hard work and expertise of our team, our fund managers and wider stakeholders, including the Combined Authorities, Local Enterprise Partnerships and Growth Hubs across the North. As we look forward to the next phase of NPIF, we will continue to harness this local knowledge to keep building on our understanding of the finance needs of businesses in the North so that they may reach their full potential.”
Sir Roger Marsh OBE DL, chair of the NPIF strategic oversight board and NP11 group of Northern local enterprise partnerships, said:
“Investment is a key part of business growth, now more than ever before. Over the years, NPIF funding has enabled businesses to survive the pandemic, grow their teams, create new, innovative products and contribute to the standing of the North on the national and global stage.
“This Evaluation truly demonstrates the impact the funding can have on business growth, and sets out the success that NPIF will continue to have in the future.”