Returning to Roots with Ambition
It is a pleasure to be back on familiar ground, though I must admit that I understand the surprise some Manchester-based attendees may feel at seeing me in a tie.
Reflecting on my time in the cabinet from 2007 to 2010, I find it fitting to echo a sentiment I often expressed during that period: Gordon is indeed correct. His contributions in every cabinet meeting were invaluable, and I take pride in being one of his loyal supporters. Life has taught me that his insights often prove to be prescient.
Today, I am delighted to acknowledge the presence of members from my cabinet, including the Business Secretary and AI Minister Kanishka Narayan, who are part of the Greater Manchester team that is increasingly asserting its influence on the national stage. Together, we are here to discuss our nation’s potential.
Setting Our Sights on Innovation
Gordon’s assertion that Britain can become the world’s preeminent innovation nation resonates deeply with me. We are already making strides in this direction, but I believe it is crucial for us to set a national objective: to lead the world in innovation.
The encouraging news is that we are already on the cusp of achieving this goal. We possess numerous strengths and assets that Gordon has outlined, yet this moment calls for us to challenge ourselves to reach even greater heights. Our country deserves a sense of direction and purpose as we move forward, and this is something I am committed to fostering across all regions and nations of the UK.
To truly be recognised as an innovation nation, we must cultivate globally significant clusters in every region, each supported by a prominent company that embodies the spirit of innovation. This will create opportunities for investment, growth, and quality jobs that are equitably distributed throughout the UK. It is essential for us to embark on a deliberate national effort to re-industrialise the UK in the 21st century, transforming it into an economy driven by innovation and research.
A Vision for Re-Industrialisation
Re-industrialisation is a central element of our mission, one that must resonate with people from all walks of life in every corner of the UK. We are capable of achieving remarkable feats, such as discovering a cancer cure or making advancements in dementia research and nuclear fusion. Those who doubt our potential must remember that we have triumphed in the past—why not again?
Manchester is historically significant; it is the city where Ernest Rutherford first split the atom in 1917. This legacy inspires us to explore the possibilities of making nuclear fusion a reality. The Dalton Nuclear Institute, located nearby, is already a leader in its field.
Innovation is woven into the fabric of British identity. Figures like Ada Lovelace envisioned computers long before they were invented, and Alan Turing established the groundwork for the first programmable computer, which was developed here in Manchester in 1948.
Tim Berners-Lee revolutionised communication by creating the World Wide Web, and our contributions to life sciences, electric motors, jet engines, and telecommunication further showcase Britain’s innovative spirit. This legacy continues to thrive today.
Harnessing Regional Strengths
As we consider our current assets, it is essential to recognise the strengths present in every region of the UK. For instance, the creative sector in the Liverpool city region has flourished, contributing significantly to productions viewed on platforms like Netflix. Meanwhile, South Yorkshire boasts an outstanding advanced manufacturing research centre that is enhancing productivity.
Across the UK, we can find remarkable achievements: Edinburgh’s fintech sector, Dundee’s gaming industry, Glasgow’s global hub for photonics, clean energy initiatives in Newcastle, space research in Leicester, and the UK’s largest electric vehicle battery plant in Somerset, to name but a few. Greater Manchester stands out with its AI cluster, the largest by headcount outside London and the South East.
London, too, is home to a myriad of strengths, from creative industries to research and technology. It serves as proof that we possess world-class capabilities in every region, and as Gordon affirmed, it is time for each area to assert its presence on the global stage of innovation.
The Role of Academic Institutions
These innovation clusters are bolstered by our esteemed universities, many of which are represented here today. Their contributions to driving the UK’s innovation economy cannot be overstated. Without their involvement, we would not have achieved the progress we have seen over the past decade.
Our universities are arguably our most potent asset in establishing a position of global leadership in innovation. With 16 institutions ranked among the top 100 worldwide, they engage in world-class research and foster a steady stream of startups.
As we look towards the future, the UK Biobank is set to move to the Manchester Science Park, marking a significant advancement in life sciences in this region. The government is committed to investing over £80 billion in research and innovation, underscoring our dedication to this vital sector.
Addressing Challenges in Innovation
Despite our strengths, we must acknowledge that we are not yet maximising our potential. This collective challenge is one we must resolve together. Being an innovation nation requires us to collaborate across our diverse regions, combining our strengths to create something greater than the sum of our parts.
In my initial months as Prime Minister, I have encountered numerous challenges that demand our attention. Engaging with our European partners is crucial, as we will only rise to these challenges through collaboration.
We must adopt a clear vision and shared purpose that guides us in our endeavours. This aligns with my belief that we must empower communities to take charge of their futures. To that end, I have established Number 10 North, an initiative aimed at decentralising power from Whitehall and fostering an environment conducive to innovation throughout the UK.
Empowering Local Communities
The presence of the Cabinet Secretary and former Chief Executive of the Greater Manchester Combined Authority here today signifies our commitment to empowering local leaders. By placing more power in the hands of communities, we can cultivate the conditions necessary for innovation to thrive, allowing for seamless collaboration among public, private, and academic sectors.
Such collaboration has already yielded results in Greater Manchester, and I am determined to see similar progress across the entire country. By decentralising authority, we can set ambitious goals for our communities and witness the transformative effects of empowered local leadership.
In this context, I am eager to see the establishment of a robust growth fund in every region, modelled after our successes here. This fund would draw from public resources to attract private investment, enabling swift and collaborative decision-making to drive growth.
Announcing Key Initiatives
Today, I am pleased to announce three significant measures to advance our innovation agenda. First, we will devolve local innovation partnership funds to established mayors starting in 2028. This is a crucial first step in providing local leaders with dedicated innovation funding.
Second, we will build upon our existing industrial strategy by identifying UK clusters with the potential to become truly world-class. We will commit £1 billion over the next four years, in collaboration with UK Research and Innovation, to support these efforts.
Lastly, we will foster collaboration between clusters in a manner that has not been achieved before. The partnership between Greater Manchester and Cambridge serves as an exemplar, demonstrating how synergy can lead to innovative breakthroughs.
Fostering a Collaborative Innovation Ecosystem
As we strengthen these partnerships, we will also explore further collaboration across sectors, such as the fintech industry in Edinburgh and gaming in Dundee. By fostering connections among complementary clusters, we can elevate the UK’s standing in the global innovation landscape.
However, given the fierce international competition, we must ensure that we support British investors, inventors, entrepreneurs, and businesses. Our most valuable asset remains our people, and we must create pathways for their talents to thrive.
To achieve this, we will reshape our education system to ensure it is ready for the innovation economy of the 21st century. This will involve promoting parity between academic and technical education, providing everyone with a route into the innovation sector.
Welcoming Global Contributions
We also recognise that many of the UK’s fastest-growing companies were founded by individuals who came from abroad. We extend our gratitude to these innovators and welcome the brightest minds from around the world—researchers, academics, and entrepreneurs—to choose the UK as their home.
It is essential that we cultivate a more inclusive and interconnected approach, moving away from the divisions of the past decade. Networking, both domestically and internationally, is paramount to our success.
Furthermore, we must empower our innovators to transition freely between companies and launch their own ventures. The use of non-compete clauses has stifled innovation, and I believe it is time to reconsider their prevalence in our industry.
Legislating for Change
Today, I announce that we will legislate to eliminate non-compete clauses as barriers to employment for our most promising startups and scaling companies. This change is long overdue and essential for fostering innovation.
Additionally, we will explore options to address the broader use of restrictive practices. Every business requires talent to succeed, and we must ensure