Under the new approach, local knowledge and leadership will be put at the forefront, with tailored strategies for each region
The Chancellor has announced a transformative approach to regional economic development, ahead of her highly anticipated speech on economic growth next week. This strategy will align the National Wealth Fund (NWF) and the Office for Investment (OfI) to work closely with local leaders across the UK, aiming to create tailored investment pipelines that reflect regional growth priorities.
Placing local knowledge and leadership at the core, the initiative aims to develop bespoke strategies for each region, ensuring investments are targeted to drive sustainable growth. Central to the government’s Plan for Change, this effort seeks to rebuild Britain by fostering nationwide prosperity and initiating a decade of national renewal.
As part of the plan, the NWF will pilot Strategic Partnerships in Greater Manchester, West Yorkshire, West Midlands, and Glasgow City Region. These partnerships will provide regions with enhanced commercial and financial advice, helping them attract and secure long-term investments in key sectors such as technology, manufacturing, and green energy.
The Chancellor emphasized the potential of these initiatives to fuel the next wave of economic growth, building on the NWF’s recent success. Over the last six months, the NWF has created 8,600 jobs and unlocked nearly £1.6 billion in private investment across industries including green technology, digital infrastructure, and manufacturing.
National and Local Leaders Unite for Regional Growth
The announcement coincides with a high-profile meeting in Rotherham, where Regional Mayors will meet with the Deputy Prime Minister, along with ministers from key departments including Housing, Treasury, and Work & Pensions. Discussions will focus on regional priorities and strategies to enhance collaboration between central and local governments, ensuring growth strategies are aligned with investment opportunities.
The OfI is also launching pilot programs in Liverpool City Region and the North East Combined Authorities to provide tailored support for turning regional growth plans into attractive investment opportunities. These initiatives aim to foster partnerships between local leaders, central government, and industry experts, unlocking private investment to drive regional prosperity.
A National Commitment to Local Prosperity
In recognition of Scotland’s potential to deliver on clean energy and growth goals, the government will collaborate with devolved administrations through the NWF to maximize investment opportunities in Scottish cities, particularly Glasgow.
Highlighting the economic potential of UK cities, government figures estimate that raising the productivity of cities like Manchester, Birmingham, Leeds, and Glasgow to the national average could generate an additional £33 billion annually in Gross Value Added (GVA).
Leadership on the Global Stage
The announcement comes as the Chancellor returns from Davos, where she promoted the UK as a prime destination for global investment. She reaffirmed the government’s commitment to restoring economic stability and boosting business confidence as part of the Plan for Change, which aims to create jobs, improve living standards, and support families across the country.
Chancellor of the Exchequer, Rachel Reeves MP, said, “At Davos, I’ve been telling some of the world’s biggest investors that the UK is a safe bet for their investments, whether in London or Leeds. It’s critical that we grow every region’s economy, which is why we’re putting local leaders at the center of this effort. These reforms will bring wealth and jobs to communities across the country.”
Deputy Prime Minister Angela Rayner added, “Growth is at the top of this government’s agenda, and we’re committed to seeing it in every region. By empowering local leaders through our Devolution Priority Programme, we’re unlocking the potential of local economies to create lasting change.”
Business and Trade Secretary Jonathan Reynolds said, “The UK is back on the global stage, offering one of the best-connected environments for business. Our forthcoming Industrial Strategy will unleash the potential of our cities and regions, positioning the UK as a global leader in innovation and economic growth.”
The government’s Plan for Change seeks to ensure that every region of the UK benefits from targeted investments, setting the stage for a decade of inclusive and sustainable growth.
