The Government’s Autumn Budget, published on 28 October, sends a strong indication that innovation-led growth, entrepreneurship, regional investment and cheaper, cleaner energy remain central to the UK’s economic strategy. For businesses across Salford, Greater Manchester and the North West, the biggest opportunities lie in access to finance, research and innovation funding, AI investment, lower energy costs, and stronger regional decision-making.
Since its launch in 2024, the Centre for Sustainable Innovation (CSI) has supported more than 410 organisations and delivered over 30 programme cohorts. Here’s a breakdown of our thoughts around the Budget and what it means for businesses in Salford and the wider region.
Backing start-ups and scale-ups
For entrepreneurs and growing businesses, the Budget includes a commitment to create a more attractive environment for founders and high-growth companies.
Highlights include:
- An additional £5 billion of financial capacity for the British Business Bank, including for equity investment, to help unlock finance for start-ups and scale-ups that often struggle to access growth capital. The Bank will also double its commitments to women-led funds to £200 million
- An additional £15.4 billion for the National Wealth Fund to crowd in private sector investment and stimulate business growth, including £2 billion for a new Energy Wealth Fund
- Plans for a new package of support aimed at creating a “world-leading tax offer” for founders and their companies
- Regulatory reforms designed to reduce the burden on businesses and make it easier for firms to test and commercialise innovative products and services
Why this matters for businesses in Greater Manchester: The region has one of the UK’s fastest-growing start-up ecosystems outside London. Improved access to finance could help more businesses move from start-up to scale-up, creating jobs and driving regional growth.
Why this matters for businesses in Salford: With almost 90% of Salford’s 11,195 businesses classified as microbusinesses, and the city recently named the UK’s most entrepreneurial city, measures that improve access to finance, innovation funding and scale-up support could have a significant impact on the local business community.
£86 billion for research and development
One of the most significant signals for innovation-led businesses is the Government’s continued commitment to research and development (R&D). The headline figures below come from the 2025 Spending Review, and the Budget adds measures to make R&D easier for firms.
Highlights include:
- £86 billion of public investment in R&D over the Spending Review period (2026-27 to 2029-30)
- £38.6 billion allocated through UK Research and Innovation (UKRI)
- UKRI’s annual budget rising from £9.2 billion in 2026-27 to nearly £10 billion by 2029-30
- Dedicated funding streams to support innovative businesses through commercialisation, product development and scale-up activity, with UKRI planning about £7 billion over four years to help innovative companies grow
- Simpler access to R&D tax reliefs and improved venture capital schemes, both announced in the Budget
This continued investment provides opportunities for businesses looking to access Innovate UK funding, collaborate with universities or bring new products and services to market.
Why this matters for Salford and Greater Manchester: Businesses connected to the University of Salford, the Oxford Road Corridor, Manchester’s digital and AI clusters, and the wider North West innovation ecosystem are well placed to benefit from collaborative R&D programmes and innovation funding.
Major investment in AI and emerging technologies
The Budget also reinforces the UK’s ambition to become a global leader in artificial intelligence and advanced technologies.
New investment includes:
- An additional £140 million for the Sovereign AI Unit
- An additional £120 million for the AI Security Institute
- £165 million for a National AI Biosecurity Initiative
These investments are expected to stimulate innovation, create new commercial opportunities and strengthen the UK’s position in emerging technology sectors.
Why this matters for Greater Manchester: The city region already has significant strengths in AI, digital technologies, cybersecurity, health innovation and advanced manufacturing, making local businesses well positioned to benefit from future programmes and partnerships. With programmes already available such as BUILD AI and Challenge AI, this helps to ensure the acceleration and continuation of AI development and support for businesses in the region.
AI growth also depends on energy and data centres need power and grid connections. The Budget also sets out a new Data Centre Covenant with tests that strategic data centres are expected to meet. CSI is already well placed with our interlinking themes of digital, AI and sustainable energy research.
Cheaper energy and local clean power
Energy bills are at the centre of the Budget’s support for households and businesses. The Government says its priority is now cheaper energy, with clean power key to getting there. Gas set the wholesale price of electricity around 60% of the time in 2025, down from about 90% in the early 2020s.
Highlights include:
- More than 10,000 energy-intensive manufacturers will get a 20 to 25% discount on their electricity bills from April 2027 through the British Industrial Competitiveness Scheme, with a back payment for 2026-27
- No new policy costs on energy bills until a Cost Control Framework is in place, and new clean power bought only where it lowers bills and is ready to connect to the grid, starting with the next renewables auction, Contracts for Difference Allocation Round 8
- For households, a £100 Household Energy Payment from January 2027 for up to 20 million homes in council tax bands A to D in England, the 0% VAT rate on household electricity extended to July 2027, £100 million for councils to help those hit hardest, and the abolition of gas standing charges
- £100 million over two years to cut prices at local, lower-powered public EV chargers, saving drivers who charge on-street around £150 a year from Spring 2027, plus a taskforce to look at letting drivers use their home electricity tariff at these chargers
- A new mileage-based Electric Vehicle Excise Duty for electric and plug-in hybrid cars from April 2028
Why this matters for Greater Manchester: The city region aims to be carbon neutral by 2038, and much of that work happens building by building and street by street. Cheaper electricity for energy-intensive manufacturers and lower-cost on-street charging will help. New Warm Homes loans will help households spread the cost of solar panels, but local delivery will matter more than before.
More local control over growth funding
The Budget continues the Government’s devolution agenda, giving regions greater influence over economic development priorities.
This includes:
- New powers for metro mayors and regional leaders, set out in a new Fiscal Devolution Roadmap that the Government describes as the biggest transfer of power and resources out of Whitehall in a generation
- Increased local control over investment decisions, with mayors receiving a share of business rates from April 2027 and of income tax from 2028
- New growth-focused funding mechanisms designed to support regional economies, including £285 million for Good Growth Funds in 2027-28 and a £1.5 billion borrowing facility for Mayoral Strategic Authorities
Why this matters: Greater Manchester has a strong track record of using devolved powers to support business growth and innovation. More local decision-making should help ensure funding is directed towards the sectors and opportunities with the greatest regional impact. The city region already runs its own local growth funds, so it is well placed to put the new national funds to work quickly. The same tools could back local energy projects, from building retrofit and rooftop solar to EV charging, which cut costs for businesses and keep more of the money spent on energy in the local economy.
What CSI businesses should watch
Based on the Budget announcements, there are five key opportunities for businesses in our network:
- Innovation funding
Continued investment through UKRI and Innovate UK should create opportunities for collaborative R&D and commercialisation projects - Finance for growth
Additional backing for the British Business Bank could improve access to investment for ambitious SMEs and scale-ups - AI and digital innovation
Significant investment in AI and emerging technologies aligns well with Greater Manchester’s existing strengths - University collaboration
Businesses looking to work with research institutions, access specialist expertise or develop new products could benefit from increased R&D investment - Energy costs and local clean energy
Cheaper electricity for energy-intensive manufacturers, lower-cost public EV charging and new local funding tools create room for projects on energy efficiency, on-site generation and smart charging
How CSI is responding
CSI works on how organisations adopt sustainable and digital innovation, and what works and for whom. The CSI’s work spans the sustainable and circular transition, the digital and AI transition, and the organisational change that both require.
For businesses, this means one route in. Firms that join programmes such as Help to Grow: Management, BUILD AI or Challenge AI can are supported to achieve their aspirations whether that’s adopting AI to streamline or improve processes, create growth action plans, or go on to Knowledge Transfer Partnerships and joint bids to Innovate UK, UKRI and Horizon Europe, with CSI as their link to expertise across the University.
Looking ahead
While further detail will emerge over the coming months, it’s evident that the Budget places innovation, entrepreneurship and regional growth at the heart of the UK’s economic strategy. For businesses across Salford and Greater Manchester, the opportunities are likely to come through stronger support for founders, increased R&D investment, growing AI capability, lower energy costs and deeper collaboration between industry, universities and public sector partners.
For innovative SMEs and ambitious entrepreneurs, now is the time to start thinking about how these emerging opportunities can support future growth. Keep the conversation going with the team at the Centre for Sustainable Innovation, and be among the first to hear about new support and business opportunities available.