Early evaluation shows the Northern Powerhouse Investment Fund II is improving access to finance
An ‘Early Assessment Report’ undertaken by an independent research company (SQW Ltd) has found that the Northern Powerhouse Investment Fund II (NPIF II) is helping to improve access to finance for smaller businesses across the North, supporting ambitious firms to grow, innovate and scale.
By September 2025, NPIF II had provided £115m of investment to 306 businesses, helping to address local finance gaps and increase the availability of funding for smaller businesses.
The evaluation found evidence that the fund is supporting companies that may otherwise have struggled to secure investment, while also attracting additional private sector finance into the region.
The most recent data published in May 2026 shows that NPIF II has now facilitated almost £275m into more than 400 ambitious businesses and has invested across all areas within the NPIF II geography.
The findings form part of SQW’s independent evaluation of the British Business Bank’s wider £1.6bn Nations and Regions Investment Funds programme, which found the programme is performing well across the UK.
By September 2025, the programme which includes six funds across England and the Devolved Nations had invested £294m, delivered across 951 investments to 877 businesses. This attracted £233m of private sector investment, securing £0.79 of private sector leverage for every £1 invested. The funding is helping smaller businesses strengthen productivity, drive innovation and unlock growth
In the North, NPIF II is supporting businesses across a broad range of sectors with information and communication leading the way (47 businesses supported), followed by professional, scientific and technical activities (42 businesses) and manufacturing (41 businesses)
The evaluation of the Nations and Regions Investment Funds programme overall found strong evidence of finance additionality, with 81% of surveyed businesses reporting they would either have been unable to secure finance without the Nations and Regions Investment Funds or would have secured funding on a smaller scale or over a longer timeframe.
The evaluation found that businesses supported by the programme are already reporting positive outcomes, including improvements in productivity, innovation, workforce skills and growth. It also found evidence that the programme is helping businesses build confidence in accessing external finance and supporting their future growth ambitions
ScrubMarine a Cumbria-based deep-tech maritime robotics company developing autonomous systems for the inspection and maintenance of marine infrastructure recently received investment from the Northern Powerhouse Investment Fund II.
Its technology is designed to address the costly, labour-intensive and potentially hazardous processes involved in maritime infrastructure maintenance, with its robotic systems capable of cleaning and inspecting ship hulls.
In 2025, the business secured more than £740,000 in pre-seed funding led by NPIF II – PXN Equity Finance. The funding is being used to complete ScrubMarine’s prototype, expand its engineering team across Whitehaven and Edinburgh, and move towards the first commercial pilot deployments with fleet operators.
Rohith Devanathan, co-founder at ScrubMarine, said: “Marine maintenance is an area where there is a real opportunity to rethink how things are done. Much of the industry still relies on processes that are labour-intensive, disruptive and difficult to scale, at a time when operators are under increasing pressure to improve efficiency and reduce their environmental impact.
“The support we received from PXN and the Northern Powerhouse Investment Fund II gave us the confidence and capacity to challenge that status quo and demonstrate what autonomous robotics can bring to the sector.”
Adam Kelly, managing director of Debt & Regional Funds at the British Business Bank, said: “This independent evaluation highlights the important role the Northern Powerhouse Investment Fund II is playing in supporting smaller businesses across the North.
“The findings demonstrate how the fund is helping businesses access the finance they need to invest, innovate and grow, whilst also helping to attract additional private sector investment into the regional economy.
“While still at an early stage, it is encouraging to see strong evidence that the fund is supporting businesses that might otherwise struggle to secure finance and is helping create the conditions for long-term economic growth.”
The six Nations and Regions Investment Funds evaluated were the Northern Powerhouse Investment Fund II, Midlands Engine Investment Fund II, South West Investment Fund, Investment Fund for Scotland, Investment Fund for Wales and Investment Fund for Northern Ireland.