The government recently announced the creation of a £500m Local Innovation Partnerships Fund (LIPF) that allows areas to develop locally tailored responses in partnership with UKRI. It is an important step forward in driving innovation-led economic growth across the UK.

With initial guidance now released, it's time for Mayoral Authorities, regions, and individual applicants to start shaping proposals that will unlock the potential of innovation clusters in their area.

The fund offers:

·        An earmarked strand providing allocations of at least £30m for investment in each of seven named metro mayor authority areas and one region each in Scotland, Wales, and Northern Ireland.

·        A competed strand offering up to £20m to be invested per place to support high-potential innovation clusters in other areas.

Considerations when shaping proposals should include:

·        What are the key local innovation opportunities? Local needs to be addressed and opportunities for growth need to be clearly articulated, focused on a single or multiple (without spreading funds too thinly) clusters with growth potential and aligned with a strategic vision. 

·        Where can partners work effectively together? The triple helix approach is at the core of the fund so demonstrate how civic authorities, businesses, and universities will work together.  Wider investment potential (with the fund seeking 2:1 private to public investment, across the portfolio and its lifespan) will also be a core consideration.

·        What stage are innovations at? The fund focuses on near-to-market research and innovations, allowing commercialisation impacts and scale to be realised over a relatively short time. Proposals that focus on early discovery or blue-sky research are not applicable.  

·        Are proposals ready to go? Applications can be made in November 2025 and February 2026 and funds need to be spent by 2031. Identifying timely proposals will be important, as well as demonstrating compliance with fund readiness checks.

·        What is the most effective portfolio of investment? Prioritise interventions that align with your area’s overarching innovation ambitions. A clear approach that is effectively communicated to local partners can support this, along with satisfying each of the points above.

·        How will funds be governed? Demonstrating strong governance arrangements (e.g. an innovation board) will be important to the application process and future delivery.

GC Insight has extensive experience developing both individual project proposals and programmes of investment across a wide range of funding streams. We also recently reviewed one of the Innovation Accelerator Pilot Programmes —a precursor to LIPF—and identified valuable lessons for future place-based innovation.

If you’d like to explore how GC Insight can support your proposal, contact Director kirsten.powell@gcinsight.co.uk.