Northern mayors and business leaders back “Northern 500” companies to boost the region’s economy

The Mayor will join forces with NatWest, Sage and Lloyds to help mid-market companies in the North to grow and create jobs.

Mayors and business leaders in the north are joining forces to support the “North 500” of businesses that can drive economic growth in the region.

The Northern 500 program announced by the Government is chaired by North East Mayor Kim McGuinness and Liverpool-born NatWest Group chief executive Paul Thwaite. The group, which met for the first time, aims to unite the most ambitious mid-sized businesses in the North into a single growth community.

Funding to deliver the program was confirmed by the Chancellor in the Budget, which also highlighted the involvement of the private sector, including NatWest Group and Newcastle technology group Sage. Lloyds Banking Group will join the scheme next year.

The program will open up new opportunities for Northern companies looking to scale, invest, innovate and reach new markets, helping to create jobs and drive economic growth in the North. It follows research by NatWest which found that middle market companies employ 7.3 million people and generate economic value of around £420bn a year. Adding just 1% additional growth among these businesses could generate an extra £24bn for economies outside London and the South East by 2030, the report said.

Program leaders are meeting in Newcastle this week, and aim to identify an initial cohort of around 80-100 businesses before the program officially launches in the New Year. The program will also work with the British Business Bank, National Wealth Fund, Great British Energy, Royal Academy of Engineering, Chambers of Commerce and TUC to connect businesses to investment, expertise and opportunities in the north.

Kim McGuinness, Mayor of the North East and chairman of The Great North, said: “The North is home to brilliant, ambitious businesses with ideas, talent and determination to compete with the best in the world. But very often, businesses with the potential to grow faster face obstacles that continue again.

“Mid-sized businesses are already a powerhouse of the economy. Imagine what else they can do with the right support, connections and opportunities.

“Through the Northern 500, we are bringing together the collective power of Northern mayors with some of the biggest names in banking, business and technology to unlock that potential. This is about turning Northern ambitions into economic growth – helping our businesses expand, compete internationally and create better jobs for people in our communities.”

NatWest announced a £20bn, 10-year funding commitment to the North earlier this year. The announcement came at the first Great North Investment Summit, which was held in Leeds in a bid to sell the region as a key driver of British economic growth.

Paul Thwaite, chief executive of NatWest Group, said: “The North is home to some of the UK’s most ambitious mid-market businesses, and we want to help them go further and faster. These companies create jobs, drive investment and play an important role in the economy and the communities around them.

“This is the opportunity at the heart of the Northern 500: bringing businesses and the public and private sectors together to unlock growth, increase investment and help other Northern companies provide opportunities. In addition to our £20bn funding commitment over the next 10 years, our relationship managers support customers to realize their ambitions in the North every day.

Ben Aung, chief of staff at Sage, said: “Some of the UK’s most diverse and ambitious businesses are being built here in the north. Sage was founded in the North East 45 years ago and our own journey shows what is possible when businesses have the ambition, support and opportunity to scale.

“As a company that remains proudly headquartered in the region, we are delighted to support the Northern 500 and help create the conditions for other Northern businesses to fulfill their potential.”