Regional growth was placed “at the top of the agenda” for UKREiiF by Chancellor Rachel Reeves. Speaking at the event, the Chancellor emphasised the importance of giving local leaders more power to invest in infrastructure, transport and housing.

Seizing on the power that places play in local regeneration and supporting businesses to grow, a panel discussion organised by the Catapult at the event was chaired by Andrew Carter, the Chief Executive of think tank Centre for Cities.

“An awful lot of investment is going into our cities and towns in terms of housing, infrastructure and offices; but we want more. We want to get more investment into our places, because we want them to do better.

Andrew Carter, Chief Executive, Centre for Cities

“We want them to be more prosperous, and create more opportunities and jobs. That’s important for those places, but is also really important for the country itself.

“The Government has made a big bet, that to get more growth in the UK, it's going to use its cities as a vehicle to do that. That's the right bet; now we need to make it happen.”

Understanding how to broker deals

Andrew asked his panel what more can be done around the country to create investable opportunities in city regions.

“The way the public sector presents investment opportunities speaks to a wider place-based ambition,” noted Paige Portal, a Senior Account Director at Henham Strategy, a public policy and public affairs strategic consultancy. “But it doesn't necessarily tick the boxes that private investors are looking for when it comes to risk mitigation and the structuring of finance.

“That's why a lot of Mayoral Combined Authorities (MCAs) struggle to get deals through.”

Paige added that public bodies need people who understand how to broker deals, as well as making sure that local growth plans support inclusive growth and communities.

“Central Government has a big role to play in ensuring there is consistent resource for MCAs, so they can take greater autonomy when it comes to working with investors. Right now, it's an uneven playing field. Some combined authorities have finance teams of 10, and others have one person.”

Paige Portal, Senior Account Director at Henham Strategy

Beth Carter Ottens, a Strategic Partnership Director at the National Wealth Fund said that a major challenge for public authorities is to “get into a commercial mindset”.

“A lot of combined authorities have excellent teams that work on regeneration, transport and net zero, but those are people whose whole careers have been about what's right from a policy or strategy perspective, and less about understanding what investors want.”

Beth applauded authorities who have set up dedicated investment teams by bringing in skills and capability from the private sector who “think differently”.

But, she added: “The capital cost of a lot of projects that really drive regional growth – such as place-based regional projects, commercial property and major new housing developments – often do not deliver the returns that investors are looking for, and that is a challenge – particularly in the north.”

She highlighted that the National Wealth Fund is helping to address this via its nearly £28 billion investment capacity and advisory support.

Creating the right conditions to invest

Andy Devaney, the Assistant Director of Investment at Liverpool City Region said combined authorities have “probably spent far too long trying to sell their pipelines to investors, which doesn't always work.

“I go to the investors and ask: ‘What conditions do you need to invest in our region, and what projects are out there?’ There's a sweet spot that we need to get to where we get projects under way, and they work for investors.”

Historically, most public sector projects have received grant funding, he added, but now the focus is on transitioning towards more commercially focused investment.

“That's more risky, but my pushback has always been that if we give grants away, you're not getting that back. But if you try and do something different, maybe you have a chance.”

Financial devolution has come a long way, he also said, “but it's got further to go to really give local control over budgets”.

A reflection from Bristol

Also on the panel was Lord Marvin Rees OBE, the former Mayor of Bristol, who was asked to reflect on how he encouraged investment into the city.

“Whenever we talked about investment in Bristol, it was in terms of meeting our city’s agreed goals,” he said. “When Channel 4 was looking to relocate staff from London, we said we wanted them to come to Bristol, but were not interested if they were going to move to the top of the hill, and only benefit a media sector detached from the city. We wanted Channel 4 if it helps us build a more inclusive economy.

“You have to sit within a vision of building an inclusive, sustainable economy.”

Lord Rees said regional Mayors often want “to get stuff done, but are challenged with getting Government to work with them”. Devolution, he added, “is not about local leaders saying: ‘Right, we'll take it from here, national Government can get lost’. This is about who is best placed to lead on any issue at any moment.

“And when that is local or regional government, national Government should stay in the relationship and be a top-class follower to enable and empower that leadership,” he added.

Reflecting on the session, Connected Places Catapult’s Regional and Local Growth Director, Vasant Chari said: “Whether it be driving investment in regionally-led infrastructure projects or creating the conditions for businesses to raise investment, the challenges are similar. The whole sector is learning about how regional authorities can create investment ready pipelines and curate the deal flow for investors.

“There’s no shortage of capital – the challenge is investment-ready schemes and businesses. When it comes to businesses, Connected Places Catapult’s regional work provides examples of how venture building, driven by regional priories, then makes those companies ready for investment.”

Vasant Chari, Regional and Local Growth Director, Connected Places Catapult

Read about how Connected Places Catapult works with investors to promote business opportunity.