The UK government has shared plans to give regional mayors across England greater authority over innovation funding to shape investment around local growth and strengthen high-potential tech clusters.
Under the new approach, mayors will take on a central role in directing the Local Innovation Partnerships Fund authorities and local leaders will have more influence.
The shift reflects the growing importance of regional tech ecosystems, with cities such as Manchester, Birmingham, Bristol and Leeds emerging as major centres of innovation alongside London.
“The UK’s tech growth is no longer centred solely on London – we’re seeing real momentum build across cities like Manchester, Bristol and beyond,” says Sachin Agrwal, managing director at Zoho UK. “Businesses are increasingly choosing locations where they can access strong talent pools, grow more sustainably, and tap into collaborative local networks.
“As businesses grow outside the capital, they’re also strengthening local economies, creating jobs, building skills, and fostering closer links between business and communities. Supporting these regions will be key to building a more balanced, competitive UK tech economy.”
By empowering local decision makers, the government aims to accelerate the development of high-growth sectors, support local skills and unlock new commercial opportunities across the UK.
The announcement follows ongoing work to ensure research and development spending delivers tangible economic benefits in communities across the country.
“Devolving innovation funding to regional leaders is a positive step towards more locally focused growth,” says Elizabeth Anderson, CEO of Digital Poverty Alliance.
“However, with upwards of 19 million people in the UK who are digitally excluded according to our research with Deloitte, many of which lack the essential digital skills needed to get online, it is vital that government, local councils and education bodies work together to address digital exclusion in regional communities.”
