The UK Government is supporting regions with up to £20m each to drive new local development
Regions across England and Wales are set to receive up to £20 million each in new government funding to accelerate innovation and boost local economic growth, as ministers push to strengthen the UK’s regional technology and industrial hubs.
The investment, delivered through the Local Innovation Partnerships Fund, is part of a wider £500 million initiative aimed at supporting high-growth sectors and unlocking regional opportunities across the country.
The latest round builds on previous allocations, including support for Scotland’s City Region, Tay, and reflects a wider strategy to diversify innovation and ensure economic benefits are spread beyond traditional areas.
The funding will support different sectors, each region focusing on its existing strengths.
In the South West, investment will be directed towards developing autonomous technologies, including drones that operate globally, at sea and in the air, with the aim of establishing the region as a global leader in exploration and deployment.
The Oxford-Cambridge Growth Corridor will receive support to accelerate developments in autonomous vehicles, high-performance engineering and space technology, helping to bridge the gap between research and real-world application.
In Greater Lincolnshire, the focus will be on combining agri-tech and conservation capabilities to create marketable products and expand local businesses.
Meanwhile, South-West Wales will see investment in two linked clusters: energy security, focused on offshore wind and hydrogen, and material security, aimed at improving recycling and processing key resources to reduce reliance on imports.
The East Midlands is set to benefit from funding to scale up clean energy and advanced manufacturing technologies, including the development of testing and certification facilities that will help small firms partner with global manufacturers.
In the North of England, regions including East Yorkshire, Hull and the Tees Valley will receive enhanced support, with funding packages of up to £30 million, to further industrial decarbonisation and clean energy projects, demonstrating the strategic importance of the UK’s transition to zero.
Local partners will work with UK Research and Innovation to design and deliver projects that translate research into commercial results.
The program aims to accelerate innovation by supporting collaborative research and development, attracting professional talent and creating clear pathways for investment and market entry.
Liz Kendall said the funding shows the government’s commitment to innovation in all regions.
“This investment will take local technology to the next level, helping to create jobs and growth from Teesside to Cornwall,” he said, highlighting the role of regional partnerships between businesses, researchers and local leaders.
This program reflects the growing recognition that innovation-led growth must be geographically diverse to maximize economic impact.
By building on existing regional strengths, whether in advanced manufacturing, clean energy or digital technology, the government aims to create self-sustaining innovation systems that can compete globally.
As competition for investment increases and technological change accelerates, the ability of regions to develop and commercialize new ideas will be vital to the UK’s economic future.
The latest round of funding reflects a shift to a more place-based innovation policy, with a focus on turning local technology into national growth.
If successful, the scheme could help open up new industries, support high-skilled jobs and strengthen the UK’s position as a leader in emerging technology, not just in London and the South East, but across the country.
