Government launches Northern 500 alongside proposed £150m scale-up fund

The government has launched the Northern 500, a network for 500 of the North of England's “most ambitious” mid-sized businesses, alongside a proposed British Business Bank fund of up to £150m for northern scale-ups.

Chancellor John Healey announced both at the Manufacturing Technology Centre in Coventry on 7 September, in a speech centred on cutting planning and regulatory delays.

The Treasury said the network would bring businesses into a single growth community led by the Great North partnership of mayors, with support from central government and the private sector.

The British Business Bank said the proposed Northern scale-up fund is expected to make investments of between £5m and £15m in university spinouts and other innovative, high-growth businesses, including firms in Newcastle. The Bank's commitment is intended to attract additional private capital. Healey set an ambition alongside it to double the number of UK companies valued at more than £1bn.

The two measures were announced together, but the government has not said membership of the Northern 500 will determine access to the fund.

McGuinness said the Northern 500 would offer businesses support on skills, exports and research and development. "We have launched the Northern 500 to bring our most ambitious mid-sized businesses into a new collective," she wrote on LinkedIn. Healey will chair the initiative, she said.

The Great North was formed in May 2025 by eight mayoral areas: the North East, Tees Valley, Greater Manchester, Liverpool City Region, West Yorkshire, South Yorkshire, York and North Yorkshire and Hull and East Yorkshire.

The proposed fund is a different offer from the Bank's existing Northern Powerhouse Investment Fund II, a £660m programme that has operated across the North since March 2024. That fund provides loans of £25,000 to £100,000, debt finance of up to £2m and equity investment of up to £5m.

Its £5m floor begins where Northern Powerhouse Investment Fund II's equity ceiling stops, so a North East company raising equity above £5m would be the target for the new fund rather than the existing one.

The Treasury has not published a turnover, headcount or sector threshold, or a process for selecting the firms. The Bank has not named a manager for the proposed scale-up fund or set a timetable for applications.

McGuinness said the programme would begin with a Great North trade mission to India in October.

Northern 500: key questions answered

What is the Northern 500?

The Northern 500 is a government-backed network intended to bring together 500 of the North’s most ambitious mid-sized businesses in a single growth community. The Great North partnership of mayors will lead it, with support from central government and the private sector.

Which businesses will be included?

The government has not published a list or selection criteria. It has described the participants as “mid-sized” and “ambitious”, but has not defined those terms by turnover, headcount or sector.

It has also not said whether businesses will apply, be nominated or be selected by the Great North partnership.

What support will members receive?

The government has not published a detailed membership offer. North East Mayor Kim McGuinness has said the programme will provide support on skills, exports and research and development.

She said the programme will begin with a Great North trade mission to India in October.

Is the Northern 500 a funding scheme?

No. The Northern 500 is a business network. The proposed £150m Northern scale-up fund is a separate measure announced on the same day.

The published announcements do not say that membership of the Northern 500 will determine access to the fund.

What is the £150m fund for?

The British Business Bank expects the proposed fund to make investments of between £5m and £15m in university spinouts and other innovative, high-growth businesses.

It has identified creative industries, clean energy, space and technology as examples of the sectors covered. The fund is intended to operate across the North, including businesses in Liverpool, Manchester, Bradford, Leeds, Sheffield, York, Hull and Newcastle.

How is it different from the Northern Powerhouse Investment Fund II?

Northern Powerhouse Investment Fund II provides loans from £25,000 to £100,000, debt finance of up to £2m and equity investment of up to £5m.

The proposed Northern scale-up fund is intended to support larger investments of between £5m and £15m. The British Business Bank says it would complement Northern Powerhouse Investment Fund II.

When will businesses be able to apply?

No application date has been published. The government has not yet named a fund manager or set out the process for selecting Northern 500 businesses.