Regional mayors across England are set to gain significant new powers over innovation funding, as the government moves to devolve control of the Local Innovation Partnerships Fund.
Mayors in areas including Liverpool City Region, West Yorkshire, Greater Manchester and Greater London will soon be able to decide how billions in research and development (R&D) funding is spent in their regions. The shift, expected to take effect after the next Spending Review, marks a major step in the government’s drive to empower local leaders to shape economic growth.
Under the plans, Established Mayoral Strategic Authorities will be given authority over the Local Innovation Partnerships Fund – designed to accelerate new industries, drive job creation and support future-facing technologies.
Devolution at the Heart of Growth Strategy
The move reflects a broader government commitment to decentralisation, recognising that regional leaders are best placed to understand local economic strengths and opportunities.
The Local Innovation Partnerships Fund enables collaboration between councils, universities and businesses, helping turn research breakthroughs into practical, commercial solutions. By placing funding decisions in local hands, ministers hope to unlock faster innovation and stronger economic outcomes.
Technology Secretary Liz Kendall commented:
“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.
“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.”
£500 Million Investment Backing 17 Regions
The Local Innovation Partnerships Fund already has £500 million committed for the period 2026–2031, supporting innovation across 17 regions in England. The investment forms part of the government’s wider £86 billion R&D settlement through to 2030.
In Liverpool City Region, early funding decisions are already underway. Two projects led by the University of Liverpool have secured £23.7 million from a £30 million regional allocation.
- AIM HI project: Focuses on accelerating the application of artificial intelligence and robotics within materials chemistry, boosting productivity and business growth.
- NBIC LIVE project: Will establish the world’s first centre dedicated to AI-enabled rapid innovation in antimicrobial, anti-viral and anti-biofilm materials.
These initiatives highlight how targeted regional funding can support cutting-edge research while delivering tangible economic benefits.
Building on Proven Success
The new approach builds on earlier regional innovation programmes that have already delivered hundreds of high-quality jobs and attracted significant private investment.
By devolving funding decisions further, the government aims to ensure investment is more precisely targeted – directed towards the businesses, researchers and projects with the greatest local potential.
The Department for Science, Innovation and Technology (DSIT) and UK Research and Innovation (UKRI) will now work closely with mayors to design the delivery framework for the fund’s next phase.
West Yorkshire Welcomes Local Control
West Yorkshire Mayor Tracy Brabin has welcomed the move, highlighting the region’s strength in key growth sectors including financial services, health technology, advanced manufacturing and clean energy. She 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.”
For professionals across the public sector, this development signals a shift in how innovation funding can be accessed and deployed:
- Greater local influence over R&D priorities
- Stronger collaboration opportunities with universities and industry
- More targeted economic development strategies
- Increased accountability at regional level
As the policy takes shape, local authorities and their partners will need to align strategies quickly to maximise the impact of devolved funding.
Image credit: iStock
