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Early evaluation shows the Northern Powerhouse Investment Fund II is improving access to finance and supporting business growth across the North

Press release 13 October 2026

  • Independent evaluation finds the fund is performing well and operating broadly as intended. 
  • Strong evidence the fund is addressing regional finance gaps and improving access to finance for smaller businesses.
  • £115m invested through the Northern Powerhouse Investment Fund II programme by September 2025
  • 324 investments delivered to 306 businesses across the UK by September 2025.  
  • Information and Communication was the busiest sector for funding from the Northern Powerhouse Investment Fund II
  • The six Nations and Regions funds had invested £294m in total, delivered across 951 investments to 877 businesses by September 2025

An ‘Early Assessment Report’ undertaken by an independent research company (SQW Ltd) has found that the Northern Powerhouse Investment Fund II (NPIF II) is helping to improve access to finance for smaller businesses across the North, supporting ambitious firms to grow, innovate and scale.

By September 2025, NPIF II had provided £115m of investment to 306 businesses, helping to address local finance gaps and increase the availability of funding for smaller businesses.

The evaluation found evidence that the fund is supporting companies that may otherwise have struggled to secure investment, while also attracting additional private sector finance into the region.

The most recent data published in May 2026 shows that NPIF II has now facilitated almost £275m into more than 400 ambitious businesses and has invested across all areas within the NPIF II geography.

The findings form part of SQW's independent evaluation of the British Business Bank's wider £1.6bn Nations and Regions Investment Funds programme, which found the programme is performing well across the UK.

By September 2025, the programme which includes six funds across England and the Devolved Nations had invested £294m, delivered across 951 investments to 877 businesses. This attracted £233m of private sector investment, securing £0.79 of private sector leverage for every £1 invested. The funding is helping smaller businesses strengthen productivity, drive innovation and unlock growth

In the North, NPIF II is supporting businesses across a broad range of sectors with information and communication leading the way (47 businesses supported), followed by professional, scientific and technical activities (42 businesses) and manufacturing (41 businesses)

The evaluation of the Nations and Regions Investment Funds programme overall found strong evidence of finance additionality, with 81% of surveyed businesses reporting they would either have been unable to secure finance without the Nations and Regions Investment Funds or would have secured funding on a smaller scale or over a longer timeframe.

The evaluation found that businesses supported by the programme are already reporting positive outcomes, including improvements in productivity, innovation, workforce skills and growth. It also found evidence that the programme is helping businesses build confidence in accessing external finance and supporting their future growth ambitions

ScrubMarine a Cumbria-based deep-tech maritime robotics company developing autonomous systems for the inspection and maintenance of marine infrastructure recently received investment from the Northern Powerhouse Investment Fund II.

Its technology is designed to address the costly, labour-intensive and potentially hazardous processes involved in maritime infrastructure maintenance, with its robotic systems capable of cleaning and inspecting ship hulls.

In 2025, the business secured more than £740,000 in pre-seed funding led by NPIF II – PXN Equity Finance. The funding is being used to complete ScrubMarine’s prototype, expand its engineering team across Whitehaven and Edinburgh, and move towards the first commercial pilot deployments with fleet operators.

Rohith Devanathan, Co-Founder at ScrubMarine, said:

Marine maintenance is an area where there is a real opportunity to rethink how things are done. Much of the industry still relies on processes that are labour-intensive, disruptive and difficult to scale, at a time when operators are under increasing pressure to improve efficiency and reduce their environmental impact.

The support we received from PXN and the Northern Powerhouse Investment Fund II gave us the confidence and capacity to challenge that status quo and demonstrate what autonomous robotics can bring to the sector.

Adam Kelly, Managing Director of Debt & Regional Funds at the British Business Bank, said:

This independent evaluation highlights the important role the Northern Powerhouse Investment Fund II is playing in supporting smaller businesses across the North.

The findings demonstrate how the fund is helping businesses access the finance they need to invest, innovate and grow, whilst also helping to attract additional private sector investment into the regional economy.

While still at an early stage, it is encouraging to see strong evidence that the fund is supporting businesses that might otherwise struggle to secure finance and is helping create the conditions for long-term economic growth.

The six Nations and Regions Investment Funds evaluated were the Northern Powerhouse Investment Fund II, Midlands Engine Investment Fund II, South West Investment Fund, Investment Fund for Scotland, Investment Fund for Wales and Investment Fund for Northern Ireland.

Download report (.PDF, 5.8 MB)

Further Information

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Notes to editors

About the British Business Bank

The British Business Bank is the UK government’s economic development bank. Established in November 2014, its mission is to drive economic growth by helping smaller businesses get the finance they need to start, scale and stay in the UK. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.

The British Business Bank’s core programmes support £23bn 1  of finance to almost 64,000 2  smaller businesses.

British Business Bank plc is a public limited company registered in England and Wales, registration number 08616013, registered office at Steel City House, West Street, Sheffield, S1 2GQ. It is a development bank wholly owned by HM Government. British Business Bank plc and its subsidiaries are not banking institutions and do not operate as such. With the exception of BBB Investment Services Limited they are not authorised or regulated by the Prudential Regulation Authority or the Financial Conduct Authority. BBB Investment Services Limited is authorised and regulated by the Financial Conduct Authority. A complete legal structure chart for the group can be found at british-business-bank.co.uk.

The Nations and Regions Investment Funds are supported by Nations and Regions Investments Limited, a wholly owned subsidiary of British Business Bank plc. They are not authorised or regulated by the PRA or FCA. British Business Bank plc and its subsidiary entities are not banking institutions and do not operate as such. A complete legal structure chart for British Business Bank plc and its subsidiaries can be found on the British Business Bank plc website.

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