NPIF II is powering the North forward into 2026 following a deal-filled year

Making our mark across the North in 2025

Since launching in 2024, NPIF II has been driving growth across the North, backing businesses with the capital and confidence they need to scale. In October, we celebrated a major milestone with over £115 million directly invested into more than 300 small businesses, alongside £68 million of private sector co-investment, completing over 315 deals. The range of sectors that NPIF II invests in demonstrates the strength and resilience of Northern entrepreneurship with supported business types ranging from life sciences and advanced manufacturing to consumer-focused businesses and clean-energy innovation. 

In January 2025, Farnworth-based Patisserie Lane, a family-based café in Widnes, received a £60,000 investment from NPIF II – River Capital & GC Business Finance Smaller Loans. This allowed the business to take over operations from ‘The Whole of the Spoon’ and supported a full refurbishment of the premises, bringing a new coffee spot to the local community.  

Over the summer, we provided a £150,000 loan to Leeds-based Test Consulting, an energy consultancy that offers a unique service monitoring the performance of commercial solar systems. The investment from NPIF II – Mercia Debt Finance is helping the business to roll out its service more widely, win further business in the UK and US and target the Spanish market. 

In October 2025 over in the North East, Durham-based aXenic, a leading manufacturer of advanced optical modulators used in satellite communications, secured a £250,000 investment from NPIF II - Maven Equity Finance. This will allow the business to scale its infrastructure and operations, expands its team through a recruitment drive and invest in new equipment and stock to meet growing demand.  

Aligning with Industrial Strategy and regional priorities 

The announcement of the Government’s Industrial Strategy and the development of a number of Innovation Zones, many of which are across the North, have provided a clearer remit for targeted investment, playing to the unique strengths of each region. This includes areas such as West Yorkshire’s HealthTech Zone, where MedTech device company Eventum Orthopaedics secured investment from NPIF II – Mercia Equity Finance, along with the North East’s Advanced Manufacturing and Clean Energy Zone where Lithium Salvage, a pioneering refinery for waste lithium-ion household battery materials, received investment from NPIF II – Maven Equity Finance. 

By directing capital towards businesses in these areas, NPIF II has helped the North maintain its position as a national and international hub for innovation and economic growth. Every single investment stands for more than just funding, it is a vote of confidence in Northern entrepreneurship and a step towards building a stronger, more inclusive economy.  

Looking ahead to 2026 

With the 2025 Budget now out of the way, businesses and entrepreneurs have a clear picture of the policy priorities and support mechanisms that will shape the year ahead. 

At the British Business Bank, the additional capital allocated to us will allow us to scale our support programmes, directing even more funding into SMEs across the UK.  Combined with the Government’s Industrial Strategy, this creates a stronger framework for growth, with NPIF II being one of the main mechanisms we have at our disposal to drive this forward across the North. 

With over £500 million still to deploy over the life of the programme, 2026 promises to be another thriving and active year. NPIF II fund managers are already working with a growing pipeline of businesses, underlining the clear appetite for growth and innovation across the North. This momentum reflects the importance of continuing to direct investment where it can make the greatest impact, ensuring that location isn’t a barrier, but an opportunity for entrepreneurs with different perspectives and ideas. 

The successes of 2025 have demonstrated both the resilience and the creativity of Northern businesses, proving that when opportunity meets ambition, remarkable things follow. But there’s plenty more to do, and I can’t wait to see the incredible businesses we support in 2026 as well as further success stories of businesses we have already backed.