Mayors in areas including Liverpool City Region, West Yorkshire, Greater Manchester, and Greater London will be handed control of Local Innovation Partnership funding.
After the next Spending Review, they will be given the ability to decide how and where to target regional R&D investment through the Local Innovation Partnerships Fund on their own doorstep.
The Fund supports partnerships of local leaders, businesses and universities to turn existing research breakthroughs into practical solutions that back local businesses, create jobs and improve people’s lives.
Joining mayors and local officials on a visit to Liverpool today, Technology Secretary Liz Kendall has confirmed plans to pass future control of the Local Innovation Partnership Fund in England to regional leaders, with the change expected to kick in during the next Spending Review period.
“Science and technology is the ultimate driver of growth, and this Government is determined to ensure every region shares in the prosperity brought about by innovation,” said Kendall.
“Through the future devolution of Local Innovation Partnerships Fund, we are putting money and power into the hands of regional leaders that know the strengths of their communities best, allowing them to back local businesses, encourage innovation and create the high-quality jobs that will drive the growth these regions need now and in the future.”
Steve Rotheram, Mayor of the Liverpool City Region, said: “The projects being backed in our region today show exactly what can happen when you trust places like ours to lead from the front. We’ve got world-class expertise here in the Liverpool City Region and this investment will help turn that innovation into good jobs, new industries and real opportunities for local people.
“But the really important part of today’s announcement is about what comes next. For too long, decisions about funding and investment have been made in Whitehall by people too far removed from the strengths and challenges of our communities. Giving mayors greater control over future innovation funding is another important step towards putting those decisions in local hands.
“Whether it’s life sciences, AI, advanced manufacturing or clean energy, we’ve shown time and again that our region can compete with anyone when we’re given the tools to do it. This is about backing our strengths, growing the economy and making sure the benefits are felt by the people who live here.”
The £500 million committed last year for the Local Innovation Partnerships Fund between 2026-31 will power innovative businesses in 17 regions across the country.
Today, the local partnership in Liverpool City Region has announced that two projects led by the University of Liverpool are set to receive £23.7m of the £30 million Local Innovation Partnership Funding for the region.
One project, AIM HI, will accelerate the application of artificial intelligence and robotics in materials chemistry, to increase productivity and new business growth. The other project, NBIC LIVE, will establish the world’s first centre of innovation excellence dedicated to AI-enabled rapid innovation of antimicrobial, anti-viral, and anti-biofilm surfaces and materials.
The Local Innovation Partnerships Fund is part of the government’s record £86 billion R&D settlement until 2030. The level of funding delivered through the Local Innovation Partnerships Fund in future will be subject to affordability to be determined at future Spending Reviews.
The Department for Science, Innovation, and Technology and UKRI will now work closely with mayors over the coming months to determine the best way to deliver this commitment to devolution.
Tracy Brabin (pictured, main image), Mayor of West Yorkshire, said: “For the UK’s Modern Industrial Strategy to succeed, it needs to empower the local leaders who know their communities, businesses and universities best.
“From financial services and health technology to advanced manufacturing and clean energy, West Yorkshire is a world leader in the sectors that are growing the UK economy fastest.
“With local control of public innovation funding, we’ll target investment where it has the greatest potential to create good jobs, boost economic growth, and create a stronger, better off West Yorkshire.”
Richard Parker, Mayor of the West Midlands, said: “The West Midlands has always been a powerhouse for innovation. Its strengths in science and technology are at the very heart of my plans to drive new growth and prosperity across our region.
“We know better than anyone the massive potential our communities offer. By putting funding directly into local hands, we’re giving our people the tools they need to spearhead breakthroughs, create new jobs, and power the wider UK economy.”
Professor Tim Jones, Vice-Chancellor of the University of Liverpool said: “This new funding recognises the power of partnership between universities, industry and civic leaders. Through AIM-HI and NBIC-LIVE, the University of Liverpool will help accelerate world-leading advances in AI-enabled materials chemistry and life science, while creating new opportunities for businesses, researchers and the LCR workforce.
“The projects have been developed through strong partnership working with the Liverpool City Region Combined Authority and our industry partners The LCR LIPF projects will foster long-term economic growth and support high-value jobs whilst securing our region’s reputation as a global centre for scientific and technological innovation.”