Growing Together Alliance to release Connected Clusters report: Five drivers of growth to transform UK regional economies
Today, the Growing Together Alliance, a coalition of six leading employers’ groups - including Business West - representing the leading city regions of England, will release the Connected Clusters report, outlining a bold and comprehensive strategy for the Chancellor to encourage interconnected, inclusive economic growth across the UK.
Providing an evidence-based framework for unlocking synergies between the UK’s innovation clusters, the report presents a transformative vision around Connected Clusters. By emphasising regional strengths and promoting collaboration, it is a credible plan to ensure the UK remains globally competitive while driving growth that benefits each region and no longer plays the old Treasury game of claiming that growth in one place is simply displaced from another.
The report will be launched at the Festival of Flourishing Regions, an event dedicated to exploring the role of regional collaboration in driving economic growth and innovation across the UK. Bringing together policymakers, business leaders, academics, and local stakeholders, the festival provides a platform to share insights and discuss strategies for inclusive and sustainable development. The launch of the Connected Clusters report highlights the importance of fostering stronger links between innovation hubs to maximise economic opportunities across all regions.
Five Drivers of Connected Growth
The Growing Together 2025 Report identifies five core drivers essential to achieving connected and inclusive growth:
1. Connected People (Talent and Skills):
Access to talent and skills is identified as a key factor in encouraging innovative companies to establish multiple UK locations. Recommendations include mapping talent pools in regional clusters, expanding access to the innovation economy with devolved skills funding, benchmarking visa costs, and supporting collaborative projects that connect regional talent pools.
2. Connected Places (Transport):
Physical connectivity is critical for collaboration, economic productivity, and growth. Our report calls for investment in key infrastructure projects such as Northern Powerhouse Rail, East West Rail, and HS2 to Euston, as well as incorporating connectivity goals into the UK’s Ten-Year Infrastructure Plan.
3. Connected Capital (Innovation Funding):
Increasing domestic innovation capital is vital to prevent companies from relocating overseas. Our suggested interventions include boosting government-curated VC funds, expanding place-based seed funding initiatives like Northern Gritstone, increasing R&D investment to 3.5% of GDP, and supporting regional R&D spending targets set by local leaders.
4. Connected Leadership (Devolution):
Empowering local leaders through greater fiscal devolution and more extensive decision-making powers is essential for fostering economic collaboration. The report highlights the need for strategic planning, restructuring Local Government, and incorporating deeper fiscal flexibility to align policies with regional economic geographies.
5. Connected Cultures (Placemaking):
A vibrant culture of innovation and high quality of life are critical to attracting and retaining talent. Our Alliance recommends cross-regional engagement to build collaborative networks, promoting affordable housing, and considering cultural and social infrastructure in regional development plans.
Diane Coyle, Bennett Professor of Public Policy at the University of Cambridge, said:
“Economic growth in the UK has long been hampered by policies that fail less productive places outside London and the South East. The government's focus on growth presents an opportunity to unlock the potential of cities and towns through the industrial strategy, devolution, and skills policies. Successful policies will recognise that growth is a positive-sum game, and that regions do not thrive at the expense of each other.”
Dan Thorp, CEO, Cambridge Ahead, said:
“The Chancellor’s announcements today make it crystal clear that the innovation economy is at the heart of Government’s growth mission. The OxCam region has an unrivalled contribution to make to this mission, the growth that infrastructure and housing makes possible in places like Cambridge is truly net additional to the UK.
“The new research published by the Growing Together Alliance today provides a plan to ensure the success of places like Cambridge can contribute even more to the success of other cities and regions in the UK, spreading the creation of jobs to more places, and making a meaningful and lasting difference to regional economic success across all corners of the country.”
Dr Kath Mackay, Chief Scientific Officer for at Bruntwood SciTech, the UK's largest property platform dedicated to the growth of the science, technology and innovation sectors with locations across Manchester, Leeds, Liverpool, Birmingham, Cambridge & London, said:
“The Growing Together 2025 Report makes a compelling case for addressing the deep-rooted regional imbalances in R&D funding, which are holding back the full potential of the UK’s innovation economy. While increasing public investment in underrepresented regions like the North is essential, we need to ensure this is also carefully balanced to not cut support to the Golden Triangle.
“For too long, regions such as the North have faced barriers to realising their full potential due to imbalanced public funding. This report builds on critical insights from previous research, which has highlighted that uplifting per capita public R&D spending to match the levels seen in London, the South East, and East of England would require at least £4 billion annually, with £1.6 billion needed in the North of England alone.1
“By devolving a proportion of R&D funding and building capacity for regions to manage these resources, we can ensure solutions that reflect local strengths. Simultaneously, by increasing the UK’s overall R&D intensity we can provide the necessary uplift to avoid a zero-sum game and allow all regions to grow together.”
Chris Curtis MP, Co-Chair of the Labour Growth Group said:
“Backing for the Oxford-Cambridge Arc demonstrates the Government’s commitment to driving national growth by unlocking untapped regional potential. This report shows how the benefits can be compounded by fostering and connecting these clusters right across the country, doing so by pooling the expertise of business communities on the ground.
“Most importantly it provides solutions that are ready-made for the Government to implement. The Labour Growth Group will be looking closely at these recommendations and working with the Growing Together Alliance to ensure the whole country plays its part in our vital mission to bring growth back to Britain, and share in the rewards of that.”
You can find a copy of the full report here
About the Growing Together Alliance
Currently the membership of the Growing Together Alliance - BusinessLDN, Business South, Business West, Cambridge Ahead, Northern Powerhouse Partnership and the North West Business Leadership Team – are all from the English regions. This may expand in the future to include other similar organisations from England or the other nations of the UK.
About the Festival of Flourishing Regions
The Festival of Flourishing Regions is an annual event dedicated to exploring the potential of regional collaboration to drive economic growth and innovation across the UK. The festival brings together policymakers, business leaders, academics, and local stakeholders to share insights, showcase success stories, and discuss strategies for achieving inclusive and sustainable development. Through panels, workshops, and networking opportunities, the festival aims to inspire action and foster partnerships that contribute to the prosperity of all UK regions. This year, the festival features the unveiling of the Growing Together Alliance's Connected Clusters report, highlighting the importance of innovation clusters in driving regional economic transformation.
About BusinessLDN
At BusinessLDN, our mission is to make London the best city in the world in which to do business, working with and for the whole UK.
We work to deliver the bigger picture, campaigning to tackle today’s challenges and to secure the future promise of London. We harness the power of our members, from sectors that span the economy, to shape the future of the capital so Londoners thrive and businesses prosper. We support business to succeed — locally, nationally, globally.
We campaigned for the creation of the office of London Mayor and Transport for London, for the Elizabeth Line, for congestion charging, we incubated Teach First and run the UK’s largest annual jobs and careers fair, Skills London. We create opportunities for our members, from sharing insights to providing platforms, from making introductions to finding new talent.
About Business South
Business South is an independent, business-led organisation with a vision to sustainably grow and strengthen the economy of the Central South, the UK’s global gateway.
We are working with major businesses based in the Central South, which has a population of more than 2.7m people. We want the region to be recognised nationally and internationally as a preferred location for investment. We want to illustrate that we are a place that is able to attract and retain talent, while driving increased opportunities for innovation and economic development.
Together we work with more than 100 businesses and organisations, who between them employ 100,000 people and contribute an estimated £4 billion to the regional economy.
About Business West
Business West is a certified B Corp that exists to create long-term prosperity for our businesses and our region. We help companies grow, innovate and export. We have a proven track record of connecting people, public bodies and private companies, to nurture a more productive and inclusive business landscape. We drive business forward.
At national level, as a key player in the British Chamber of Commerce we sit at the heart of a powerful network of 52 Accredited Chambers of Commerce across the UK, representing thousands of businesses of all sizes and within all sectors. Our Global Business Network connects exporters with nearly 40 markets around the world.
www.linkedin.com/company/business-west
About Cambridge Ahead
Cambridge Ahead is a consortium of businesses and academic members who share a common goal in achieving sustainable and inclusive growth for Cambridge and the surrounding area. Its purpose is to be a catalyst for the success of Cambridge and quality of life across the city region. Cambridge Ahead is comprised of 50 members, including Arm, Sanofi, the Wellcome Sanger Institute, and the University of Cambridge, and represents a working population of approximately 40,000 individuals across a variety of sectors and industries.
About Northern Powerhouse Partnership
The Northern Powerhouse Partnership is a business-led think tank and advocacy group for the North of England which fosters collaboration between local and national government. We work together to deliver sustainable growth and improve quality of life for those living and working here.
About North West Business Leadership Team
For over 30 years we have brought together senior leaders in and of the North West to harness the positive power of business for the good of the region. We are an independent business voice, connecting and helping to shape opportunities to drive positive change. Our mission is to ensure our region is a great place to live, work and do good business, seeking to lead, inspire, and harness the power of business by placing the needs of communities and all people at the heart of what we do. https://www.nwblt.com/