Greater Manchester is preparing to launch a landmark £1 billion public investment fund designed to drive major commercial, residential, and scientific development across the region. The initiative, led by Mayor Andy Burnham, represents one of the most ambitious local-level financial interventions ever seen in a UK city region.
A New Model of Local Investment
The new fund will offer a mix of loans and equity financing to catalyse high-impact projects — from new office and laboratory facilities to major residential expansions. It is being presented as a model of “good growth”, prioritising projects that serve long-term economic and social needs rather than relying on traditional top-down economic strategies.
Local officials describe it as the first fund of its kind in the UK, combining scale, diversity of investments, and devolved financial autonomy under one locally controlled vehicle.
Early Projects Already Identified
Several key developments are expected to receive initial backing:
- Kendals / House of Fraser building (City Centre)
Approximately £44 million will support the transformation of the historic department store into modern commercial space. - Victoria North “New Town” (North Manchester)
Around £34 million has been earmarked for the flagship residential expansion, which aims to deliver 15,000 new homes over 15 years. The scheme has been highlighted by national officials as a future “new town”. - Sister Science Campus (University of Manchester & Bruntwood SciTech)
A £20 million investment is planned to expand advanced manufacturing facilities, including new laboratories and office space. - Housing Developments in Rochdale and Tameside
Projects around Rochdale railway station and a long-planned garden village in Tameside are also set to receive support.
These early schemes indicate that while the fund will target towns across the region, the largest and fastest-returning projects remain concentrated in Manchester’s core.
Where the Money Comes From
Officials say the initial £1 billion capital has been assembled from a combination of sources:
- National government grants now under partial local control due to devolved powers
- The Greater Manchester Pension Fund — one of the largest local government pension schemes in the UK
- Borrowing against business rates retained locally
- Potential future support from the National Wealth Fund
The fund will operate on a recyclable basis, meaning repayments and returns will be reinvested twice per year to support new projects.
Building on Past Success — and Controversy
The new fund will absorb the older £300 million Housing Investment Fund established in partnership with the Treasury a decade ago. That programme helped finance major residential towers that reshaped the city centre, though it drew criticism for financing high-end housing rather than affordable options.
This time, Burnham is keen to highlight the benefits for outer boroughs — particularly with local elections approaching and concerns inside Labour about rising support for Reform UK in many towns.
A Region Outpacing National Growth
Greater Manchester’s economy has consistently outperformed national averages for the past decade, recording a 31% rise in productivity since 2004. Officials argue the new investment fund will help maintain that momentum and broaden growth beyond the city centre.
Mayor Burnham is expected to describe the initiative as a “serious and practical” plan to meet both economic and community needs, signalling a shift away from policies reliant on pure economic expansion without addressing wider public priorities.
