The UK Government has recently announced a new investment to help support local lenders across the country, allocating at least £30 million to key regions in each UK nation with the Local Innovation Partnerships Fund
The Local Innovation Partnerships Fund is part of a £500 million Local Innovation Partnership Fund that hopes to drive transformative innovation and economic growth by focusing on regional strengths in science and technology.
Targeting regional innovation strengthens.
Local leaders in Scotland, Wales, Northern Ireland, and several regions across England will now have dedicated funds to support innovation in areas ranging from artificial intelligence (AI) to life sciences.
By providing the Local Innovation Partnerships Fund, the UK Government is allowing regions to focus on their own expertise and opportunities, helping to unlock discoveries that could improve lives and stimulate local economies.
The Glasgow City Region, Cardiff Capital Region, and the Belfast to Derry-Londonderry corridor have recently joined the existing seven English regions to benefit from this initiative. The English areas currently supported include Greater Manchester, West Midlands, South Yorkshire, West Yorkshire, Liverpool City Region, North East, and Greater London.
Working on previous success
The Local Innovation Partnerships Fund supports previous success following a pilot programme called the Innovation Accelerator, which has already created over £140 million in private investment and created hundreds of jobs. The Innovation Accelerator has supported projects across the UK, like using AI in public transport in the West Midlands to help manage passenger delays, and healthcare innovations in Greater Manchester and Glasgow aimed at faster disease detection.
By learning from these early successes, the government hopes to increase support, allowing regions to collaborate more effectively with research institutions and businesses. The partnerships are designed to maximise the impact of research and development (R&D) investments by focusing on local expertise and industry needs.
Supporting local leaders and communities
The Local Innovation Partnerships Fund gives regions better control over how innovation investments are made. Instead of a one-size-fits-all approach, local partnerships involving city authorities, businesses, and research organisations will work with UK Research and Innovation (UKRI) to allocate funds starting from April 2026.
This model encourages regions to prioritise their existing strengths. For example, Cardiff Capital Region will be encouraged to build on its electric vehicle technology, Belfast and Derry-Londonderry could boost their cybersecurity sector, and Glasgow may focus on medical technology innovations.
Regions without confirmed funding can still apply through an upcoming competition, expanding opportunities for more parts of the UK to benefit from this investment.
This Local Innovation Partnerships Fund supports the UK government’s wider commitment to R&D, forming part of an £86 billion settlement for research and development through to 2030. By backing high-growth sectors and creating strong industry partnerships, the government hopes to promote long-term economic growth and job creation.
The focus on innovation clusters is expected to create jobs in emerging industries, attract private investment, and develop skills within local communities. Universities and research institutions play a vital role in these partnerships, acting as hubs for cutting-edge research and talent development.
Regional growth
Universities across the UK are integral to this innovation ecosystem. They contribute by partnering with industry on projects like early disease diagnosis initiatives and supporting advanced manufacturing and space technology sectors. These institutions also help equip students and workers with the skills needed for a rapidly evolving job market, further strengthening local economies.
By supporting regional innovation, the government aims to ensure that the benefits of scientific and technological advancements reach communities throughout the UK, creating new business opportunities and improving quality of life.
With this £500 million Local Innovation Partnerships Fund, the UK is taking a strategic approach to regional growth through science and technology. Local leaders now have the resources and flexibility to invest in projects that best reflect their region’s strengths, promising a future of inclusive innovation and economic prosperity across the UK.
