North West England: a thriving business hub set for ‘rocket boost’

The North West of England is a thriving business region, and with almost 2.5 million economically active people working within the three dynamic city areas of Manchester, Liverpool and Chester it offers genuine opportunities for businesses of all sizes and sectors.

Combining the rugged natural beauty of the North Pennines and the rolling landscapes of Cheshire with the vibrant cosmopolitan areas of Manchester and Liverpool, the region offers diverse business locations and first-class quality of life. With typical cost savings of 30-40%, it is an ideal alternative location to London and the southeast.

Underpinned by excellent transport infrastructure, an established business services community and an extensive talent pool, the region is a compelling magnet for inward investment.

This year Greater Manchester was once again named as the top ‘Large UK City’ for Foreign Direct Investment (FDI) in the FDI Intelligence European Cities and Regions of the Future 2024 report. In its assessment of over 500 locations across Europe, the ranking once again recognises the city-region’s strengths as a hub for investment and economic growth.

The FDI Intelligence report benchmarked 330 cities, 141 regions and 38 Local Enterprise Partnerships (LEPs), with Greater Manchester named as a the Top Large UK City overall and placing in the top five in the Economic Potential and Business Friendliness sub-categories.

Manchester has evolved a long way from its industrial roots. The assessment recognised the city-region’s status as the largest economically in the UK outside London, with an annual output of £78.7 billion, and with key strengths in the Creative, Digital and Tech, Advanced Manufacturing, Financial, Professional and Business Services, and Life Sciences sectors.

Home to MediaCityUK, Manchester attracts a wealth of digital and media companies, providing a fertile ground for innovation and growth. The presence of world-class educational institutions, such as the University of Manchester and Manchester Metropolitan University, ensures a steady stream of skilled graduates, while Manchester’s excellent transport links, including Manchester Airport, facilitate easy access to national and international markets, enhancing its appeal as a business destination.

“Manchester continues to stand out as a prime destination for businesses seeking strategic opportunities in Europe. It’s promising to see that our commitment to fostering sustainable development and driving innovation has been recognised,” said Joe Manning, Managing Director at MIDAS, Manchester’s Inward Investment Agency.

With its rich maritime heritage and strategic location, Liverpool also continues to be a key player in global trade. The historic Liverpool Docks, now a UNESCO World Heritage site, have been revitalised into a bustling hub for business and culture, while the Port of Liverpool, the UK’s main westward-facing port, is ranked as the UK’s leading port for port-centric logistics.

In a 2023 ranking of 41 UK ports by property consultant Knight Frank, Liverpool ranked first for forecast export growth and was placed in the top 10% for access to consumer markets, skilled labour, availability of land, port capacity, import growth potential and size of the existing logistics market.

Peel Ports has made significant investment at the port in recent years, building on the completion of Liverpool2, a £400 million deep-water container terminal, while the approval of freeport status for Liverpool in 2023 is expected to bring big gains to the port, the city and the wider region.

The city also offers robust business support through initiatives like the Liverpool City Region Local Enterprise Partnership (LEP), providing resources and funding to help businesses grow and succeed.

Plans for a new additional train line between the Liverpool and Manchester were announced earlier this year by the Liverpool-Manchester Rail Board. The plan includes an entirely new line that will connect through Manchester Airport and halve the time it takes to move between the two cities to just 25 minutes.

New Prime Minister Sir Keir Starmer promised on 10 July to ‘reignite the potential of the Liverpool City Region’ and confirmed that regional leaders will be backed with new powers over planning, skills, employment support and transport; along with integrated funding settlements to leaders who demonstrate exemplary handling of public money.

“Today we have reset the relationship and reset the mindset of government, with a refreshed intent to put rocket boosters under Liverpool, Merseyside, Sefton and the wider region’s local economy,” he said.

With its distinctive Tudor architecture, the historic city of Chester is a beautiful place to live and work and has always attracted businesses, like Sovereign, looking for something a bit special. Chester supports a diverse range of businesses, from financial and legal services to retail and tourism, supported by initiatives like the Chester Growth Partnership, which drives economic development and investment.

Small businesses across the North of England are also set to benefit from the launch of the new £660 million Northern Powerhouse Investment Fund (NPIF) II from the British Business Bank. NPIF II will drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses.

The first Northern Powerhouse Investment Fund has delivered over £570 million of direct and private sector co-investment into 608 businesses in the North West, creating close to 3,500 jobs, since 2017. The second Northern Powerhouse Investment Fund will enable more businesses to access the Fund to start up, scale up or continue their growth journey.

“The success of the first Northern Powerhouse Investment Fund has proven the instrumental change that access to finance can have for small businesses,” said British Business Bank chief executive Louis Taylor. “From creating hundreds of jobs to developing ground-breaking products, we have seen companies that previously lacked funding options accelerate forward in their growth journeys.

“This is why it was important to continue the Northern Powerhouse Investment Fund into its next phase. With further funding available, and a greater geographical reach in the North West, the Northern Powerhouse Investment Fund II will engage more stakeholders across the regions, bringing the business community closer together to create more opportunities for entrepreneurs everywhere.”

The North West’s combination of innovation, connectivity and quality of life creates a compelling case for businesses looking to establish or expand their operations. Its investment potential, supportive infrastructure, rich talent pool and vibrant culture scene make it an attractive destination for entrepreneurs and established companies alike.

Sovereign Corporate and Trustee Services Limited (SCATS), based in the heart of Chester, is proud to be part of this dynamic region. SCATS offers a complete, complementary suite of services and market entry solutions, from company incorporation, administration and provision of professional trustee services to discretionary trusts and employee ownership trusts .

SCATS also offers trust services and tax and succession planning, and, as a Companies House Assured Agent, can assist with director’s verification services, registration and filing annual update statements on the Register of Overseas Entities.

Whether you are a start-up looking for guidance or an established firm seeking to expand, SCATS is here to support your journey to success in the North West. Contact us today to learn more about how we can help.