Exclusive:Rachel Reeves announces new powers for mayors on innovation funding ahead of devolution white paper
Mayors will be given extensive powers around innovation funding to drive growth across the North, Rachel Reeves has announced.
The Chancellor told business and policy leaders at The Yorkshire Post’s Great Northern Conference in Hull today that this would help drive investment outside of London.
UK Research and Innovation and Innovate UK, which provide grants to businesses and scientific projects, will collaborate directly with the region’s metro mayors.
In particular, the Chancellor said there would be a focus on university spinout companies - with clusters in Leeds and Sheffield.
Ms Reeves told the Great Northern Conference: “We're going to set up new strategic partnerships between mayors and Innovate UK and UK Research and Innovation, who are responsible for the research and development and innovation budgets.
"I think that's really exciting, because we've got fantastic universities, great entrepreneurs in our Northern cities.
“If you look at the money that comes from venture capital, private equity, it doesn't flow enough to entrepreneurs outside of London and the South East.
"There are some really great initiatives to try and change that, Northern Gritstone for example, but these strategic partnerships between our mayors and these innovation bodies is a really important vehicle for bringing more research and innovation to all regions of the UK."
Ms Reeves, who said she was “proud” to be the first Chancellor to speak at the Great Northern Conference, believes this will help boost “inclusive growth” across the North.
“I absolutely accept the argument that growth on its own is not enough,” she said.
“It's got to be felt by people in all communities in the UK.
“It's no good having growth that lifts living standards in one part of the country, often London and the South East, or people working in a small number of sectors of the economy, that growth has got to be widely shared and widely felt.
“Which is why we’ve put so much focus on the devolution agenda.
“It's why, when you look at some of the early announcements that we've made as a government, whether that is establishing the National Wealth Fund, which will unlock £40 billion of private investment and headquartering that National Wealth Fund in Leeds, we get to work with local leaders and mayors to unlock local growth opportunities.”
Mayor of West Yorkshire Tracy Brabin, who also spoke at the conference, said “innovation and inward investment will be central to our local plans to build a brighter region that works for all”.
Ms Brabin added: “You can't boost the economy without giving mayors and local leaders the freedoms and flexibilities they need to drive growth and opportunity.
“I’m delighted the government is fulfilling their promises to work in lockstep with mayors, as we deliver for our communities and put more money into people's pockets.”