Across the United Kingdom, several regions are experiencing significant investment initiatives aimed at driving economic growth, enhancing infrastructure, and creating employment opportunities. These investments span various sectors, including digital innovation, transportation, renewable energy, and urban development. Below is an overview of some key areas receiving substantial funding in 2025.
Teesside: £80 Million Boost for Digital and Creative Industries
Teesside has secured an £80 million investment as part of the government’s initiative to establish Investment Zones. This funding is designated to transform the Tees Valley into a global leader in digital and creative industries, particularly focusing on Middlesbrough and Hartlepool. The investment is projected to create approximately 2,000 skilled jobs, fostering growth in sectors such as gaming, media, and technology. This development builds upon Teesside’s existing assets, including the UK’s largest Freeport, and aims to further stimulate economic activity in the region.
Liverpool: £100 Million for Baltic Triangle Station and Knowledge Quarter Expansion
Liverpool’s Baltic Triangle, renowned for its vibrant arts scene and cultural significance, is set to receive a new £100 million train station. This project aims to improve connectivity for residents and tourists, facilitating broader national travel. Additionally, the city’s Knowledge Quarter is undergoing expansion, with investments directed towards life sciences, education, and innovation sectors. These developments are expected to attract further private investment and bolster Liverpool’s position as a hub for research and development.
Scotland: £350 Million Investment in Airport Infrastructure
Scottish airports, including Glasgow, Aberdeen, and Southampton, are poised for major transformations following a £350 million investment by AviAlliance, the owner of Glasgow Airport. The funding will be utilized to refurbish terminal buildings, enhance operational and retail facilities, and improve airfield infrastructure. These upgrades aim to significantly enhance passenger experience, increase connectivity, and support the country’s net-zero carbon goals. The investment is also anticipated to generate substantial employment opportunities and stimulate economic growth across the regions served by these airports.
Northumberland: £10 Billion Investment in AI Data Centre
In Blyth, Northumberland, a significant £10 billion investment has been confirmed for the development of an AI data centre on a previously derelict site. This project, led by U.S. private equity firm Blackstone, is expected to create 4,000 jobs, including 1,200 dedicated to construction. The data centre will serve as a critical infrastructure component, supporting the UK’s growing digital economy and positioning the region as a leader in technological innovation. The investment also includes £110 million allocated for local skills training and transportation infrastructure improvements.
Cornwall: £56.8 Million for Mid Cornwall Metro Project
Cornwall is set to benefit from the Mid Cornwall Metro project, a £56.8 million rail redevelopment initiative aimed at enhancing coast-to-coast connectivity. The project includes restoring Newquay station’s second platform, adding a passing loop at Tregoss Moor, and updating signalling systems. Funded primarily through the UK’s Levelling Up Fund, the initiative seeks to improve public transport accessibility, reduce congestion, and support economic development within the region. The project is scheduled for completion by 2026.
Oxford-Cambridge Corridor: Plans for a ‘Silicon Valley’
The UK government has unveiled plans to transform the area between Oxford and Cambridge into a ‘Silicon Valley’ for Europe. This ambitious project aims to boost the UK economy by £78 billion within a decade through investments in infrastructure, housing, and innovation. The initiative includes expanding Heathrow Airport, updating planning regulations, and fast-tracking construction projects. The focus is on fostering growth in sectors like artificial intelligence and life sciences, positioning the corridor as a global hub for technological advancement.
South Yorkshire: Reopening of Doncaster Sheffield Airport
Doncaster Sheffield Airport, which closed in 2022 due to financial difficulties, is set to reopen in 2026 following a £30 million investment. The City of Doncaster Council has unveiled a masterplan that includes a new direct rail link and station, connecting the airport to both the Lincoln Line and East Coast Mainline. The estimated cost for this infrastructure is £1 billion. The initiative is supported by the UK government and the South Yorkshire Mayoral Combined Authority, with funding originating from the City Region Sustainable Transport Settlements. The airport’s reopening is projected to boost the UK economy by £5 billion and contribute £2 billion in additional benefits by 2050.
North West England: Liverpool Bay Carbon Capture Project
The UK government and Italian energy company Eni have agreed to proceed with the Liverpool Bay Carbon Capture and Storage (CCS) project, marking a key step in the UK’s climate strategy to reduce industrial emissions and boost employment in northern England. The British government has pledged up to £21.7 billion over 25 years to support CCS projects. The Liverpool Bay initiative will facilitate the transport of carbon dioxide from industrial sites in northwest England and north Wales to Eni’s depleted gas fields via a new and repurposed pipeline network, including 35 km of new pipelines. This project forms the foundation of the HyNet CCS Cluster, with Eni set to serve as the CO₂ transport and storage operator.
National Initiatives: UK Shared Prosperity Fund
The UK Shared Prosperity Fund is a central pillar of the UK government’s ambitious Levelling Up agenda and a significant component of its support for places across the UK. It provides £2.6 billion of new funding for local investment by March 2025, with all areas of the UK receiving an allocation from the Fund via a funding formula rather than a competition. This funding aims to support local businesses, improve infrastructure, and enhance community development across the nation.
Renewable Energy: Eastern Green Links Project
The Eastern Green Links project involves the construction of two planned submarine high voltage direct current power cables from the East coast of Scotland to Northeast England to strengthen the National Grid. The two links combined will deliver 4 GW of renewable energy from Scottish wind farms to England. At an estimated cost of £3.4 billion for the two links, the Eastern HVDC projects represent the largest electricity transmission investment project in the recent history of Great Britain. The project supports the UK’s commitment to achieving net-zero emissions by 2050.