Muse are a leading nationwide placemaker with a track record of over 40 years working in partnership with the public sector to deliver mixed-use regeneration that supports economic growth, housing delivery and thriving town and city centres.

The business has a strong presence within the North of England, with regional teams operating in the North West, Yorkshire and the North East.

Muse has delivered some of the region’s most important projects. For example, at Salford Central where ECF – the placemaking partnership between Muse, L&G and Homes England has worked in partnership with Salford City Council for nearly two decades to deliver more than 1,000 homes, offices, and public space, as part of a £1bn transformation.

Alongside a continuation of their work in Salford, Muse are working with local and national partners across the North West. This includes in areas such as Blackpool, Oldham, St Helens, Warrington and Wythenshawe.

Meanwhile in Yorkshire and the North East, ECF are actively progressing plans for the flagship East Bank Urban Village in Hull, with Hull City Council, and working to deliver an emerging masterplan for the sustainable, 1,000-home, Bradford City Village, which is being delivered in partnership with Bradford Council.

This announcement comes at a pivotal moment for the North. Last week, the Government announced its plans to deliver Northern Powerhouse Rail, while work is under way on a strategy for the Northern Growth Corridor, due to be published later this year. Together, these developments present a renewed opportunity to link major transport investment with regeneration, development and long-term economic growth.

As new members of the Partnership, Muse will contribute expertise in infrastructure-led regeneration, masterplanning and delivery models that align transport investment with commercial development, housing and innovation-led growth. This includes experience of station and corridor-led development, long-term stewardship of places, and working across complex public–private partnerships to turn strategic infrastructure commitments into investable, deliverable schemes.

Baroness Elliott of Whitburn Bay, Chair of the Northern Powerhouse Partnership, said:

“We’re delighted to welcome Muse to the Northern Powerhouse Partnership at a pivotal moment for the North. Muse has an established reputation for transforming our cities and town by creating places for people to work and homes for people to live in.

With the Government confirming its commitment last week to delivering Northern Powerhouse Rail, and a strategy for the Northern Growth Corridor due to be launched in the spring, there is the opportunity to bring forward more ambitious plans for our cities and towns which otherwise could not have happened. Muse’s experience in infrastructure-led growth, masterplanning and long-term stewardship will be vital in helping ensure infrastructure investment brings benefits to the lives of Northerners wherever they live.”

Cllr Susan Hinchcliffe, Leader of Bradford Council and Board Member of the Northern Powerhouse Partnership, said:

“Muse’s work in Bradford demonstrates the importance of linking regeneration and long-term investment with improved connectivity. As the Government moves forward with Northern Powerhouse Rail, with Bradford at its heart, and develops its Northern Growth Corridor strategy, it’s vital that towns and cities are able to translate infrastructure investment into jobs, homes and thriving places. Muse’s experience in working with councils to deliver sustainable, community-focused regeneration makes them a valuable addition to the Northern Powerhouse Partnership.”

Muse will be represented on the Northern Powerhouse Partnership Board by Phil Mayall, Managing Director at Muse, reflecting the company’s commitment to senior-level engagement in the Partnership’s work.

Phil also holds several strategic positions including Vice-Chair of the British Property Federation Regional Policy Committee, member of the Property Leaders Council, and Fellow of the RSA. He is also Governor of Oldham College.

Muse’s involvement follows their supportive engagement with several national and regional bodies. This includes the BITC – Business in the community, Passivhaus Trust, The Association for Rental Living, NLA, West London Business and Business LDN.

Phil Mayall, Managing Director at Muse, said:

“We are delighted to be joining the Northern Powerhouse Partnership. With the government’s continued focus on supporting transformation and accelerating regional growth, we have a real opportunity to make an impact and go above and beyond in delivering meaningful, lasting, change in the North of England.

“As someone born and raised in the region, I am passionate about the people, place, and potential which can be unleashed here. This is a sentiment shared by our skilled regional teams in the North, and by across the business. Drawing on our decades of experience as placemakers, we’re looking forward to sharing our insights, lessons, and learnings with partnership, to help best shape the future of the North of England.”

As a member of NPP, Muse will build on and contribute to the Partnership’s workstreams and policy development, sharing expertise on place-based regeneration, infrastructure-led growth and how long-term investment can support a stronger Northern economy.

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The government has today confirmed Northern Powerhouse Rail as a central part of its growth plan for the North, setting out a phased programme of investment to improve rail connectivity between the region’s major towns and cities.

The announcement includes £1.1bn of development funding over the current Spending Review period and confirms a clear sequence for delivery. Early phases will focus on improved connections between Leeds, Bradford, Sheffield and York, alongside development work on the Leamside Line to ensure services reach Newcastle. This will be followed by a new route between Liverpool and Manchester via Warrington and Manchester Airport, before further improvements to trans-Pennine links across the network.

Crucially, the government has positioned Northern Powerhouse Rail not as a standalone transport scheme, but as the backbone of a wider Northern Growth Corridor, explicitly linking improved connectivity to higher productivity, housing delivery, job creation and global competitiveness.

Business leaders from across the North have welcomed the announcement, highlighting the role that better, more reliable transport plays in unlocking the region’s economic potential.

Rami Baitiéh, CEO of Morrisons, said:

“As well as having stores and colleagues across the country, we have a strong and longstanding base in Bradford. The news that work on Bradford station is being taken forwards in order to connect that city better not only to other key cities in Yorkshire but also to Manchester, Manchester Airport and the wider North West is going to be hugely beneficial for businesses and the local economy.”

Jerome Frost OBE, CEO of Arup, said:

“We welcome the Government’s commitment to Northern Powerhouse Rail as a truly transformational moment for the North of England. This infrastructure will help unlock the region’s vast economic potential, which will be felt positively across the UK.

“At Arup, we’re ready to help turn this vision into reality. Our analysis shows that properly delivered, NPR will do far more than move people faster between cities. It will generate tens of billions in economic benefits and provide the sustainable transport choices essential for future communities.

“The region deserves transport infrastructure that matches its ambitions. Today’s announcement represents a once-in-a-generation opportunity to build a transport system that the North of England needs to turbo-charge economic growth.”

Ken O’Toole, CEO of Manchester Airports Group (MAG), said:

“This is a welcome and long overdue step towards the creation of a highly productive and internationally competitive Northern growth corridor.

“By placing Manchester Airport at the heart of a full Northern Powerhouse Rail network, people and businesses across the region will have the direct access they deserve to the world.

“That will help high-value industries to thrive and attract investors and visitors to all parts of the North – maximising the region’s contribution to national growth.

“The project will deliver the public investment needed to ensure the North benefits fully from MAG’s £1.3bn transformation of Manchester Airport. It will unlock the full capacity of Manchester’s existing two full-length runways – capacity that is available now.

“That is why we look forward to working with Government and regional partners on ways to deliver NPR at the earliest possible opportunity.”

Chris Oglesby, Chief Executive of Bruntwood and Bruntwood SciTech, commented:

“The Government’s commitment to working with local partners to deliver NPR is welcome. The combination of strong national commitment over the long term with mechanisms that support local decision making is an important step forward in ensuring that we finally have a transport system that is fit for the 21st century.

“For businesses, reliable connectivity is fundamental to a modern productive economy. It unlocks investment, attracts international business and supports growth.”

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The agreement formalises a relationship that has steadily been expanding over recent years, with the DUBS contributing analytical expertise to NPP’s work on innovation, productivity and regional economic performance.

For NPP, the partnership is designed to strengthen the quality of evidence underpinning our research and policy proposals. It will create new opportunities to:

• Work jointly on research into productivity, skills, innovation and regional economic structures
• Draw on specialist academic insight to test and improve emerging policy ideas
• Connect researchers with local leaders, businesses and policymakers
• Support projects that translate data and analysis into practical recommendations

Under the MoU, both organisations will develop a programme of activity that may include workshops, commissioned research, expert roundtables and opportunities for student engagement. Together, we aim to bring academic perspectives into live policy debates, ensuring the decisions that shape the North’s future are informed by high-quality evidence.

Early areas of focus are expected to support NPP’s priorities: understanding how regional value is created and retained, strengthening innovation ecosystems, and creating the economic conditions for higher growth and better jobs.

Together, this partnership signals a renewed commitment to the North’s long-term success. It is our hope that by combining academic excellence with practical policy expertise, NPP and Durham University Business School can create the foundations for new ideas, stronger evidence and better outcomes for communities across the region.

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The Northern Powerhouse Partnership (NPP) is delighted to welcome National Grid as its newest member, strengthening joint efforts to deliver economic growth, high-quality jobs and long-term investment across the North of England.

National Grid’s membership comes at a pivotal moment as the organisation embarks on an unprecedented programme of upgrades through The Great Grid Upgrade – the largest transformation of the electricity transmission network in generations.

Yesterday NPP were welcomed at the National Grid’s newly opened Eastern Green Link 2 (EGL2) visitor centre at Wren Hall, a major clean energy project that will help carry renewable power between Scotland and Yorkshire.

National Grid brings extensive technical, engineering and infrastructure expertise to the Northern Powerhouse Partnership. Their leadership on clean energy transmission, large-scale project delivery and future skills development will only strengthen the Partnership’s work across energy, skills and supply chain policy.

As part of The Great Grid Upgrade, National Grid is delivering key northern projects including:

• Eastern Green Link 1 and 2
• Yorkshire Green
• Cross Border Connection (proposed)
• North Humber to High Marnham (proposed)

These investments form the backbone of the UK’s transition to cleaner, more secure and more affordable home-grown power. National Grid’s overall network upgrade programme is expected to support up to 55,000 jobs across the UK by 2030, with a significant proportion in northern communities.

The North is already seeing the benefits of this investment:

• Construction partner BAM is creating around 200 skilled jobs on EGL2, including apprenticeships and engineering roles that offer long-term career pathways.
• Meet-the-buyer events for EGL1 and EGL2 have connected hundreds of northern SMEs with contract opportunities—helping local firms win work in civil engineering, cabling, transport, environmental services and technical design.
• National Grid is investing in power infrastructure that supports the region’s wider economic ambitions, from improvements to Grid Supply Points for Network Rail to the Sheffield Cable Replacement, strengthening energy resilience across the city.

As members of the Partnership, National Grid will work alongside civic and business leaders to ensure upcoming infrastructure upgrades maximise opportunities for local people, supports regional supply chains, and creates skilled jobs that young people can access in the clean energy sector.

Baroness Julie Elliott, Chair of the Northern Powerhouse Partnership, said:
“We’re delighted to welcome National Grid into the Partnership. Their expertise in major infrastructure delivery, engineering and clean energy transmission will be invaluable as we work to ensure the North plays a leading role in Britain’s transition to a low-carbon economy.

“Our research shows the huge jobs potential from the manufacture and deployment of Small Modular Reactors, the electrification of rail, and the shift to cleaner transport – all of which depend on strategic grid investment.

“Hearing about the apprenticeships and career opportunities being created across the region was a powerful reminder of what this investment means for northern communities. These are secure, high-quality roles for the next generation of technicians and engineers—central to delivering clean, affordable energy.”

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In an open letter coordinated by the Northern Powerhouse Partnership (NPP), senior executives and entrepreneurs from across the North’s infrastructure, education, professional services and manufacturing sectors have made the case that NPR is essential to realising the North’s economic potential.

The letter – signed by figures including Rami Baitiéh, CEO of Morrisons and Chris Oglesby, CEO of Bruntwood & Bruntwood SciTech – argues that building a new high-speed line from Liverpool through Manchester, Bradford and Leeds, with onward connections to Sheffield, Newcastle and Hull, will transform connectivity and productivity in the North.

“Northern Powerhouse Rail is the answer,” the letter states. “It would put 3.8 million more northerners within 90 minutes of four or more northern cities, more than double the number of people who can reach Manchester Airport within 90 minutes, and add £14.4bn in GVA annually by 2060.”

The signatories stress that this investment would create jobs, attract private investment and drive regeneration, while providing confidence to developers and employers that the North’s infrastructure ambitions are being realised.

The letter adds that NPR should be “radically different to HS2” – developed from the bottom up in partnership with local government and business, using innovative delivery models and focusing on regeneration, housing and growth outcomes first and foremost.

Henri Murison, Chief Executive of the Northern Powerhouse Partnership, said:

“It is welcome that the Chancellor and Transport Secretary remain publicly committed to investing in better connectivity across the Pennines. Furthermore, there is no more committed supporter of the long-term opportunity of the North to contribute more to growth of the UK than the Prime Minister himself.”

“The business community is committed to a way forward which matches the available resources to a prioritised plan. We will continue to work constructively to get a solution that whether it be in Bradford, Liverpool or Sheffield ensures they benefit from improvements and new lines where necessary to maximise the benefits and further to the existing investment going on electrification and upgrades between Manchester, Leeds and beyond towards the North East.”

The full letter can be read here:

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According to UKRI’s own criteria obtained via a Freedom of Information request institutions were eligible if they met three thresholds:

While the intention behind the scheme is welcome, the execution appears to have disproportionately excluded high-performing institutions in the North of England, despite their strong track record on international research.

The detailed data and analysis underpinning this briefing can be found in the annex.

What the data shows

Criteria 1: International research funding (£5m+ ERC/MSCA)

Seven Northern universities met the £5m threshold: Manchester, Leeds, York, Newcastle, Lancaster, Sheffield, and Durham. None were selected.

Criteria 2: International staff (% vs. total)

Out of the Northern universities, Durham and Lancaster both cleared the 35% threshold (with both criteria 1 and 2 for funding, but being excluded). Manchester missed out by 0.3%, and otherwise would have qualified on this and Criteria 1 where it performed particularly strongly compared to many of those universities who were funded. The rules were varied for Cardiff, which only has 32.1% of international staff.

The metric also used penalises larger universities that may have more international staff overall. This is because it judges institutions on percentage, not total number.

Criteria 3: Global Talent visas (% of staff)

No public data is available, making this criterion difficult to scrutinise. However, since it’s based on a percentage of staff, it also disadvantages larger universities.

Durham would need ∼145 Global Talent visa holders to meet the 5% threshold; Manchester would need around ∼265; Bath for example would only need ∼81.

Why this undermines innovation in the North

The result is a Global Talent Fund that contains no universities from the North of England, despite multiple Northern institutions ranking ahead of those selected based on the objective data.

In our ‘Innovation for Impact‘ report, we called for targeted investment in Northern research hubs to drive national growth. By excluding institutions like Durham, Manchester, Lancaster, Newcastle and Sheffield, this scheme misses an opportunity to build on existing centres of excellence that contribute significantly to UK innovation.

We also warned against the dangers of “place-blind” policymaking which inadvertently rewards already advantaged institutions while overlooking those with equal or greater potential. The GTF decisions exemplify this risk in practice.

The Northern Powerhouse Partnership has repeatedly welcomed the Government’s stated ambition to promote regional growth and narrow the geographic disparities that exist across the country. A funding decision that overlooks the North’s globally competitive research base sends the wrong message about the UK’s commitment to inclusive innovation.

Henri Murison, Chief Executive of the Northern Powerhouse Partnership, said:

“The principle behind the Global Talent Fund is absolutely right. Attracting world-class researchers to the UK is vital to the long-term competitiveness of our innovation ecosystem. But it’s deeply disappointing that not a single Northern university will benefit – especially when the selection criteria were both arbitrary and inconsistently applied.

“The North isn’t pleading, it’s simply asking not to be overlooked in favour of special treatment for nations like Wales, which, while important, are far smaller in scale. The North remains the UK’s only credible economic counterweight to London and the greater South East.

“If the government is serious about delivering growth across every part of the country, it cannot allow UKRI, the intermediary between government and our world-class research councils,  to stand in the way of that ambition.”

Annex: Comparative Analysis: Research-Intensive Northern Universities vs Global Talent Fund Recipients

This analysis compares research-intensive Northern Universities with 10 of the institutions awarded funding under the Global Talent Visa scheme.  John Innes Centre and MRC Laboratory of Molecular Biology have been excluded due to a lack of available data.

Summary

Criteria 1 data demonstrates that outside of the Golden Triangle universities, in terms of competitive ERC funding, the performance of the Northern universities is broadly comparable with other universities selected for Global Talent Funding.

In terms of Marie Skłodowska-Curie Actions the Northern universities are also broadly comparable with the non-GT institutions receiving funding.

The ERC/MCSA criteria is not corrected for university size e.g. larger institutions will have larger ERC and MCSA returns.

Criteria 2 data demonstrates that only Durham and Lancaster meet the arbitrary cutoff of 35% of academics being international (notable Cardiff who are funded, also do not meet the cutoff).

It is worth noting that the sector average (total international academics as a proportion of the total) is 33% – using this as the cutoff would see two more Northern universities be eligible.

When sorted by total numbers of academics, the Northern universities are far more comparable to other funded institutions.

Criteria 3 has no publicly available data.

Conclusion

Under the criteria set out, research-intensive Northern universities are not well-placed to receive funding due to only 2 meeting the cut-offs for proportion of international academics and these 2 universities being less well-ranked in the ERC/MCSA funding (mostly due to scale, as this metric is not corrected for university size).

A small shift in the Criteria 2 metric to the sectoral average would see 2 additional Northern universities qualify, including Manchester, who rank strongly in ERC and MCSA data.

The impact of Criteria 3 data is unknown and may or may not add or detract from the case.

However, as many of the criteria are arbitrary, a more nuanced approach, with a sensible place-based approach ought to be possible.

Criteria 1

Successfully receiving and using competitive international funding, assessed by the amount of European Research Council and Marie Skłodowska-Curie Actions funding received. The organisation must have reached a minimum of £5m of ERC/MSRC funding (combined) between May 2022-December 2024.

Data Sources: ERC Horizon Europe Dashboard for 2024 data, Gateway to Research for EU Guarantee Scheme funding for May 2022 to end of 2023.  To note: it was not possible to distinguish different schemes under the EU Guarantee, so all grants were included.

Universities who have been awarded funding and research-intensive Northern universities are compared and ranked according to the total value of ERC and EU Guarantee Scheme grants e.g. competitive ERC funding.  The Northern universities are broadly comparable to the non-Golden Triangle universities receiving the award.

Marie Skłodowska-Curie Actions again demonstrate that Northern universities are broadly comparable in terms of the number of actions when compared to the non-Golden Triangle universities.

Criteria 2

Recruiting and retaining international researchers, assessed by the percentage of academic staff that are classed as international according to Higher Education Statistics Agency (HESA*). The organisation must have reached a minimum of 35% of academic staff classed as international, in the academic year 2023/24.

Data Source: HESA data on nationality of academic staff (either UK, EU, or non-EU) for 2023/24.  Institutions with under 500 academics staff have been removed.

Only 2 Northern universities are above the 35% cut-off in the criteria for minimal proportion of academic staff that are international.  It should be noted that University of Cardiff, also do not qualify, despite being funded, under these criteria.  Sectoral average is 33% (e.g. total number of international academics as a proportion of total academics in the dataset).

There are 60 more data points to this table.

When the data is ordered by total number of international academics, however, the picture is somewhat different, with the Northern universities being broadly comparable to non-Golden Triangle universities:

Criteria 3

Use of the Global Talent visa, which is the UK’s primary visa for researchers and specialists, assessed by the percentage of UKRI-endorsed Global Talent visa holders compared to total academic staff numbers according to HESA*. The organisations must have had a minimum of 5% of UKRI-endorsed Global Talent visa holders. GTV endorsement data used is from FY 2019/20 – FY 2024/25.

No information is available on this criteria in the public domain.

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Between 2004 and 2023, Greater Manchester recorded the highest rise in gross value added (GVA) per hour worked, outperforming every other combined authority and city region for growth across the UK. This follows a period of sustained investment in public transport and infrastructure, alongside the long-term devolution of powers to Greater Manchester’s metro mayor. The 31% increase in productivity is a huge achievement which has begun to meaningfully close the gap between the city region with London.

Meanwhile, the northern town of Rotherham has emerged as one of the fastest-growing sub-regional economies for productivity in the UK and the fastest-growing in the North, with a 63.9% increase in productivity over the same period.

This dramatic improvement has been driven by the growth of the Advanced Manufacturing Innovation District shared with neighbouring Sheffield in South Yorkshire. It is a regeneration success story that has turned former site of the of the battle of Orgreave into a globally recognised hub for high-value manufacturing. It includes the Advanced Manufacturing Research Centre which has attracted inward investment to the area and has most recently been helping with R&D for Rolls Royce SMR (Small Modular Reactors) project.

Explore the data

You can explore the full dataset behind our analysis via the interactive charts below:

• ITL1 – UK Regions and Nations
  Growth in GVA per hour worked across the UK’s main regions, 2004–2023.
• ITL2 – Sub-regional areas
  Productivity trends across combined authorities and city regions, including Greater Manchester.
• ITL3 – Local authority areas
  Local-level performance, highlighting standouts like Rotherham.

These charts are based on ONS labour productivity data, analysed by the Northern Powerhouse Partnership.

Andrew McPhillips, Chief Economist for the Northern Powerhouse Partnership, said:

“This is a milestone moment for the North. Greater Manchester leading the UK on productivity growth shows what’s possible with long-term leadership with ambition, major investment in public transport and more powers through devolution. More of the great Northern cities are taking their destiny in their own hands as Greater Manchester did and we can expect similar success, particularly if their respective economies become better connected through projects initially like TransPennine Route Upgrade and start to be able to reinforce each other’s growth.

“Rotherham’s success at the heart of South Yorkshire shows how industrial innovation, skills and regeneration can transform a local economy. The Advanced Manufacturing Park has put Rotherham on the global map, this is the kind of model we need to replicate right across the North from Atom Valley to Goole in the Humber Freeport.”

Mayor of Greater Manchester, Andy Burnham, said:

“Greater Manchester has been the UK’s economic success story over the past two decades. We are showing what can be achieved when ambition is matched by devolution and investment, forging a path for other English cities and regions to follow.

“We are beginning to close the productivity gap with London and the South East, but the job is far from over, and we are already hitting constraints. We need the Government to give us the right powers and funding, particularly on transport and skills, so that we can remove those constraints and accelerate our city-region’s growth in the decades to come, creating opportunities and prosperity for our people while powering the growth of the UK economy.”

South Yorkshire’s Mayor, Oliver Coppard, said: “South Yorkshire is at the forefront of a national industrial revival—and Rotherham is leading the charge. In Rotherham we’re seeing industrial strategy done right, delivering exactly what the country needs: higher productivity, stronger innovation and real economic transformation. 

“The results speak for themselves. Rotherham’s emergence as a place where productivity is growing almost quicker than anywhere else in the whole of the UK, is a testament to our advanced manufacturing sector and our success building the industries and jobs of the future. Our success won’t just benefit South Yorkshire—it’s a blueprint for how the UK can grow, compete and thrive. 

“From the site of the Battle of Orgreave 40 years ago, to a globally recognised hub for innovation today, Rotherham is national example of industrial strategy done brilliantly well.”

Cllr Chris Read, Leader of Rotherham Council said:

“This is welcome recognition of the progress we’ve made in Rotherham — one of the UK’s fastest-growing local economies. It’s a testament to the innovation, investment and skills that have driven our transformation over the past two decades. It also demonstrates the importance of strong public-private partnerships and upfront investment. Hidden in these figures are the real stories of large-scale land reclamation in the north of the borough, as well as the world’s first Advanced Manufacturing Park, which was only possible in collaboration with the University of Sheffield.

 “Of course, there remains still much to do to create the jobs and opportunities we want to see right across our borough. We’re forging ahead with the largest programme of physical regeneration for many years, improving our town centre as well as localities beyond. That includes progressing plans for a new train station, which would return mainline train services to Rotherham for the first time since the 1980s, alongside new homes and business premises, to ensure we continue to make progress over the next two decades.”

Lynda Shillaw, Chief Executive of Harworth Group plc said: 

“Harworth has invested in excess of £200m over more than two decades in the regeneration of the former Orgreave mine and coking works. Today’s findings underline the key role that Harworth has played alongside public sector partners to unlock regional economic growth, creating a thriving and sustainable employment community at the Advanced Manufacturing Park alongside the adjacent New Waverley community. 

“Our expertise as a master developer and flexible approach to funding development has supported skills, jobs, and growth for local businesses, globally recognised occupiers and higher-level academia. We are at the heart of regional growth in the UK and as a leading developer of industrial and logistics, we are investing in our next generation of sites from our 34.1m sq ft pipeline, much of which enables new employment hubs to be delivered at scale into the regions. We look forward to continuing to collaborate with the public sector and business to accelerate delivery jobs and opportunities to our regions, playing our part in driving growth and productivity for the UK and supporting the delivery of the Industrial Strategy”

Prof. Ben Morgan, Interim CEO of the AMRC, said:

“At a time when the Government has put advanced manufacturing at the heart of its 10 year plan for growth, this research shows the potent impact manufacturing, and in particular highly innovative manufacturing, can have to positively affect regional productivity, but more importantly people’s lives.”

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Backed by new economic modelling, it shows that targeted public and private R&D investment into the North’s most promising sectors and clusters would help close the productivity gap with the South and unlock up to £206 billion in additional economic output over the next decade.

The proposals form the centrepiece of Innovation For Impact, a major new report published today by NPP in collaboration with Durham University Business School in the House of Commons. The report provides the most comprehensive assessment to date of the North’s innovation ecosystem, mapping cluster strengths across 71 subsectors and evaluating each region’s performance on skills, technology, infrastructure and absorptive capacity.

The report follows the Spending Review announcement earlier this month of limited devolved funding local leaders as part of the wider £22.5bn a year in R&D funding by 2029/30 available through national institutions which could allow for the gap between North and South as the last government to be closed. At the heart of the proposal is a fundamental rebalancing of the UK’s innovation economy to mirror how government has long backed the ‘Golden Triangle’ and doing the same for regions with the capacity to scale innovation and commercialise it as well as up productivity of the wider stock of businesses.

Key findings include:

• R&D spending per capita in the North East is less than half the England average and just a third of that in the East of England.

• Sectors such as clean energy, health, digital and advanced manufacturing are clustered in the North but underperforming in productivity due to lack of support for adoption and scale.
• A pan-Northern innovation strategy focused on diffusion, infrastructure and skills could add £72–£206 billion in GVA over 10 years, even after subtracting business-as-usual growth.

Policy Recommendations

NPP’s overall recommendation is that government innovation funding can deliver productivity growth across the whole Northern economy, particularly the emerging and established clusters in city regions. This means focusing not just on firms producing innovation, but also on increasing the ability of businesses across the economy to adopt and absorb it-especially in areas where growth can be supercharged by wider investment in skills and connectivity through projects like Northern Powerhouse Rail.

The report makes five specific recommendations:

1. Business rates on lab space, particularly to support start-ups and scale-ups, should be reduced in the review of this tax
2. The award of £30 million each in the Spending Review to build on the Greater Manchester innovation accelerator and extend to South Yorkshire, West Yorkshire, Liverpool City Region and North East is welcome. However, across these part devolved funds we need greater levels of ambition, and a total value of £3bn a year across the North to include translational research and diffusion.
3. The Local Growth Fund, which replaces the Shared Prosperity Fund, is to be targeted at the North and Midlands and will help correct the decline in funding since we left the European Union for local adoption by businesses of innovations (specifically SMEs). We strongly support backing regions with agglomeration which in the case of the North includes all those with and awaiting devolution because as demonstrated by the NPIER the sum of the North is greater than its individual parts.
4. Support the catapults as pan-Northern as well as national institutions, to align their funding with the work they would do through innovation deals for northern SMEs and wider place specific activity.
5. Build on the Made Smarter programme to design a series of pan Northern programmes focused on adoption and diffusion explicitly.

Jessica Bowles, Vice Chair of NPP and Director of Strategy at Bruntwood, said: “This report shows what those of us working in northern cities have long recognised: our economy is rich in innovation potential – from healthtech and clean energy to advanced manufacturing and digital. The foundations are already in place, but what’s been missing is a strategic and long-term commitment from government to help these clusters scale and thrive.

“Unlocking that potential means backing the North not only with R&D funding but also with investment in infrastructure and skills that support diffusion and adoption. We know that innovation doesn’t happen in isolation – it’s embedded in our places, our businesses and our universities. Devolved, place-based investment and greater control for local leaders are essential if we want to turn that embedded strength into meaningful economic growth.

“Our report shows the North has the assets to deliver, but it needs the tools to do the job.”

Professor Kieran Fernandes, Executive Dean of Durham University Business School, said:
“This report is a critical step in reshaping the UK’s approach to innovation and productivity. The findings show that targeted investment in the North could unlock both regional and national growth, addressing the persistent dilemma of regional versus national priorities. The economic evidence is clear: rebalancing innovation spending is not just a question of fairness, but a national economic imperative.”

Tom Bridges, UK Government and Innovation Leader at Arup, said:
“As an employee-owned firm of more than 18,000 members worldwide – including teams across eight offices in the North of England – Arup is proud to be a major investor in innovation and R&D. We do this through deep partnerships with universities, clients, industry bodies, and a growing network of start-ups and scale-ups.”

“The North of England is uniquely positioned to help the UK realise its ambition of becoming a global science and innovation superpower. With world-class universities, R&D-intensive businesses, thriving start-up ecosystems, established innovation districts, and the momentum of Freeports and Investment Zones, the region has all the ingredients for success.

“To unlock this potential, we need greater R&D investment in the North, the expansion of Innovation Accelerators, and targeted support from government and Mayoral Combined Authorities — to back innovators and build the labs and facilities they need to grow.”

See full report here:

View the report’s data in more detail through the interactive charts below or in full screen here following this link: https://public.flourish.studio/story/3154346/

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Lord O’Neill has been a key player in championing regional economic development and was a leading proponent of the original northern powerhouse concept, an idea which he developed while chairing the Cities Growth Commission and then led in government as Commercial Secretary to the Treasury. 

Reflecting on the end of his term of office, Lord O’Neill said:

 “We founded the Northern Powerhouse Partnership to give business a voice in improving northern productivity, and to bring civic and business leaders together to develop solutions to the UK’s deep regional divides. It has been a privilege to lead the Partnership and help inform critical research to the long-term health of the UK economy. I know Julie will be a passionate champion for the North of England and will steer the Partnership from strength to strength.”

Baroness Elliott served as the Member of Parliament for Sunderland Central from 2010 to 2024 and was appointed to the House of Lords earlier this year. Her roles in parliament have included Shadow Minister for Energy and Climate Change, membership of the Business and Skills, and Culture, Media and Sport Select Committees, and she has been a longstanding supporter of the North of England’s economic interests

Commenting on her appointment, Baroness Elliott said:

“I am delighted to be the incoming Chair of the Northern Powerhouse Partnership, and I want to place on record my thanks to Jim O’Neill for all of his amazing work supporting and steering NPP since it was established.  The North is full of talent and potential, yet persistent challenges remain. I look forward to working with businesses, universities, mayors, local leaders and national politicians to ensure that the North has the opportunity to thrive.”

NPP’s Board has appointed Lord O’Neill to join George Osborne as Co-Presidents of the organisation, a senior advisory role that enables him to continue supporting the Partnership’s work.

Notes to editors:

• The Northern Powerhouse Partnership is a business-led think tank focused on economic growth in the North of England. It works to champion local and national policies that will increase productivity in the region and close the North – South divide. 
• Lord Jim O’Neill will remain Chair of Northern Gritstone, an investment company focused on science and innovation start-ups in the North of England

For further enquires, please email joe.dadomo@northernpowerhousepartnership.co..uk

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The contents of the letter outlines the Humber’s economic significance and the challenges it faces. The region plays a critical role in the UK’s renewable energy transition, and the letter warns that without stronger coordination and advocacy, it may struggle to secure government support and investment compared to other industrial clusters.

It is signed by key business figures from the region, including:

• Richard Gwilliam, Chair of the Humber Energy Board
• Professor Dave Petley, Vice-Chancellor of the University of Hull
• Peter Stephenson, Executive Chair of Able
• Andrew Dawes, Regional Director for the Humber, Association of British Ports
• Suzanne Lowe, Vice President, Air Products Plc
• Nikki West, SVP HR for Corporate Services and Head of Global Talent, Smith-Nephew

They advocate for the creation of a Humber Estuary Growth Zone to capitalise on the Humber Freeport’s potential and present a unified proposition to global investors. They also propose establishing an Invest Humber Estuary body to oversee infrastructure improvements and strengthen the skills pipeline for industries such as offshore wind, carbon capture, and advanced manufacturing. Candidates for Metro Mayor are being urged to include commitments to these initiatives in their election manifestos.

The letter also raises concerns about the economic risks facing the region, including uncertainty around the future of British Steel’s Scunthorpe operations, which could result in significant job losses. Conversely, a strategic and unified approach to investment could create tens of thousands of jobs and unlock up to £15 billion in private sector funding for decarbonisation efforts.

While recent government announcements have prioritised investment in other industrial clusters, the Humber was not mentioned in the Chancellor’s growth speech. Business leaders caution that without action ahead of this summer’s Comprehensive Spending Review, private sector interest in industrial decarbonisation may decline, making government backing even more critical.

The letter concludes:

“We are remarkable and it is our time to be revolutionary. Keeping the lights on for the nation as we have for decades. Making real the potential of Immingham and Grimsby. Making real the potential of Hull. Making real the potential of Goole. Making real the potential of Scunthorpe. Disagree disagreeably about everything else, but this promise for the Humber is one we can’t afford you not to make.”

Full letter:

Dear candidate,

We write to you as some of the leading employers from both Yorkshire, and from Lincolnshire. From the North Bank, and from the South Bank. From both sides of the estuary we share – the Humber.  

We are wealth creators – and even more importantly, job creators. The government has set a Growth Mission for the country – and it is one which we all believe matters more here, more than anywhere else in the country. We have a steel works on the brink of closing its blast furnaces – with thousands of jobs in the balance and a new era of an electric arc furnace in our grasp. We have the chance to create tens of thousands more jobs in the energy sector, supporting the economy of the wider North of England, delivering 28GW of offshore wind renewable energy and £15bn of private sector investment for Carbon Capture and Storage and hydrogen alone to decarbonise our industry. This will keep industry thriving and growing in the Humber and replace any job losses from the steel works.

What unites us is our commitment to improving the lives of people in some of the country’s most deprived communities—individuals with remarkable potential and a drive to succeed. If successful, you will take on a significant and vital role—one that, unlike other Combined Authority areas, carries an added responsibility. You will need to champion what is best for our Estuary, a shared opportunity that demands true collaboration with a counterpart who may be familiar or entirely new to you, and whose identity you cannot predict in advance.

We stand ready to support you and ask that you commit to backing the Humber Estuary, ensuring it gets the coordinated focus it needs. This, in turn, will give you more time and equivalent resources to invest in places like Beverley or Lincoln—equally important but distinct, requiring separate, tailored plans to deliver effectively as Mayor.

The Energy Estuary needs a Humber Estuary Growth Zone, maximising the potential of the Freeport and aligning with other development sites from both sides of this Estuary. We need one front door when investors from around the world come knocking. We need the port and land infrastructure planned and delivered, so ambitious local businesses can join with inward investors and get on with the job at hand. We need to have the right skills when we need them, and innovation to support the growth here, everything from advanced manufacturing railway rolling stock, to offshore wind turbine installation and servicing.

As the private sector, we must play our part. That’s why we support Invest Humber Estuary—to unite the next Mayor, regardless of who wins, with both the private and public sectors. We urge you to do the same in your manifestos. Our region has lagged behind smaller, less economically significant areas simply because we haven’t had the right institutions to match our potential and build on our strong foundations. This has let our people down.

We are remarkable and it is our time to be revolutionary. Keeping the lights on for the nation as we have for decades. Making real the potential of Immingham and Grimsby. Making real the potential of Hull. Making real the potential of Goole. Making real the potential of Scunthorpe. Disagree disagreeably about everything else, but this promise for the Humber is one we can’t afford you not to make.

Yours sincerely,

Signatories include:

Richard Gwilliam UK BECCS Programme Director, Drax Group Plc & Chair, Humber Energy Board

Peter Stephenson Executive Chairman, Able UK Ltd

Dave Petley Vice Chancellor, University of Hull

Ian Aldous Director UK North, Mace Group

Paul Fursey Lead Executive UK, General Manager Humber Refinery, Phillips 66

Richard Jones Northern Cities Executive, Arcadis

Suzanne Lowe Vice President, Air Products Plc

Nikki West SVP HR for Corporate Services and Head of Global Talent, Smith-Nephew

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