The importance of investing in Yorkshire and the Humber
By Simon Cunnington, Director at the British Business Bank
As a traditionally underserved region, investment into Yorkshire and the Humber is paramount. From digital technologies and manufacturing to healthcare and innovation, the region is full of businesses primed for investment which, if given the right support, can not only contribute to regional economic growth, but also the wider UK economy too. The Northern Powerhouse Investment Fund II (NPIF II) is addressing these disparities by helping to close regional investment gaps between London and the North, in turn supporting innovative businesses and sustainable job creation.
The economic importance of Yorkshire
Yorkshire and the Humber has a historical economic importance across a variety of key sectors, all of which produce local jobs and support the economy. As a key driver of the Industrial Revolution, manufacturing has long-been one of Yorkshire’s biggest growth sectors, with advanced manufacturing still booming in areas like Sheffield and the Humber. The rugged landscape of the Yorkshire Dales provides ample opportunities for agriculture and, more recently, renewable energy. West Yorkshire’s financial professional service sector has also continued to boom in hubs like Leeds.
Not only does this diversification of sectors bring a rich heritage to the region, but it also makes it an excellent place to invest in, with businesses across all sectors able to benefit from NPIF II funding. This is becoming increasingly the case as national businesses continue to see the attractiveness of the region as a base, with Leeds having grown to be a prominent financial services city – something typically seen only in London and more recently the North West.
The challenges Yorkshire faces
Despite the economic importance of businesses in the region, Yorkshire and the Humber has historically received less investment than other UK regions, such as London and the South East. The Northern Powerhouse Investment Fund II is an opportunity to bridge this gap, with a dedicated fund available solely to businesses in the North. Research by the University of York found that smaller businesses in Yorkshire and the Humber often felt hidden, due to the large geography of the region. However, NPIF II’s focus on the North will help to overcome this hurdle, with specialist Fund Managers on the ground in the region, supporting Yorkshire and the Humber-based businesses and raising awareness of the funding options available to them.
NPIF II – supporting Yorkshire’s economic growth
The Northern Powerhouse Investment Fund II has a number of finance options available to businesses, including smaller loans, debt finance and equity finance. By providing different forms of finance, NPIF II is ensuring it can support the needs of businesses of all different sizes, ensuring entrepreneurs at every stage can access the support they need to grow. NPIF II aims to fund sustainable, diverse, high growth businesses, targeting support at those who may have traditionally been overlooked, such as female-founders or businesses working within renewable energy or tech, while also contributing to job creation in the region and supporting long-term economic growth.
Success stories from Yorkshire
We have already seen some brilliant businesses coming through NPIF II, demonstrating the real life impact the Fund is having in the region. Harrogate-based Kirsty’s, the UK’s leading ‘free from’ range of ready meals, secured £2m from NPIF II – Mercia Equity Finance. The funding will add 15 new jobs to its 55-strong team over the next six months, creating work opportunities for locals. The Fund also provided £100,000 worth of support to Thornton Park Farm from NPIF II – Mercia Debt Finance, which will be used to construct five luxury pods and support the diversification of the business from a traditional working farm. As making a living from smaller farms becomes more difficult, the diversification will bring in another revenue stream for the family business, in turn contributing to the local economy. Moving further east Wild Intervention, a youth support service based in Hull, secured funding from NPIF II – BEF Smaller Loans, which will create 15 new jobs and safeguard 43 others.
The North of England, including Yorkshire and the Humber, is full of attractive investment opportunities, with a whole host of businesses able to benefit from external finance. By investing in Yorkshire and the Humber, we can reduce regional inequalities and support inclusive growth in the region, creating a more balanced and resilient economy nationally. There’s so much opportunity in this diverse region, so it’s now on us to support these businesses to ensure they can grow and drive this forward.
