Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what the (a) funding arrangements, (b) governance structures and (c) management structures are for the Northern Powerhouse Investment Fund.

The Northern Powerhouse Investment Fund comprises debt and equity funds in each part of the Northern Powerhouse region. It is funded through pooled European Regional Development Fund (ERDF) funding from participating Local Enterprise Partnerships (LEPs) matched with a combination of public and private grant and loan contributions from the European Investment Bank (EIB), the Department for Business and Trade (DBT), and the British Business Bank (BBB). In each case the holding fund is ultimately owned by the Secretary of State for Business and Trade.

Each sub-fund is run by a private fund manager contracted by the BBB, with a mandate to invest in businesses spread across the region. Finance is provided based on affordability and the merits of the applicant’s business plan.

The performance of these fund managers and the distribution of funding is scrutinised by members of the Northern Powerhouse Investment Fund Strategic Oversight Board, which includes representatives of each participating LEP as well as DBT and DLUHC officials.