Key points:
- The government will deploy around £700 million to unlock up to 10 major industrial and commercial sites.
- The aim is to attract up to £2 billion of private investment and support tens of thousands of jobs over time.
- The money will come as loans, equity and targeted grants, plus technical and advisory support.
- The barriers named include access to finance, grid connections and planning constraints.
- Target sectors are advanced manufacturing, digital and tech, defence and life sciences; logistics is not mentioned.
£700m for six to 10 sites
The programme was announced on 2 November. According to the government, it will use about £700 million and expert support to unlock up to 10 sites across the UK. Its public ambition is six to 10 sites.
The support will be offered as:
- loans,
- equity investment,
- targeted grants,
- technical and advisory support.
The Accelerator is aimed at commercially viable sites with strong investor demand that are held back by specific barriers. The government names access to finance, grid connections and planning constraints. Each investment will be subject to commercial assessment, due diligence and approvals.
Who runs it and where
The programme is delivered by the Office for Investment and the National Wealth Fund, with property consultancy CBRE as national delivery partner. The No10 North unit will work with mayors and local leaders to identify priority projects.
The Accelerator is already working on sites in Glasgow, Burgess Hill and Sheffield. It is also exploring opportunities in:
- Greater Manchester, West Yorkshire and South Yorkshire,
- the West Midlands and the Liverpool City Region,
- the North East,
- the Glasgow City Region and the Cardiff Capital Region.
It is open to sites in every UK nation and region, including science parks, manufacturing sites and innovation districts.
“This programme will get the ball rolling for up to 10 of the UK’s most important potential sites,” said Business Secretary Jonathan Reynolds.
Where is logistics?
The government lists advanced manufacturing, digital and tech, defence and life sciences as target sectors. Logistics and warehousing are not mentioned, and the locations of the first projects have not been confirmed.
Even so, large industrial sites rarely work without freight. New factories need suppliers, distribution centres and reliable road links. The barriers the Accelerator wants to remove, especially grid connections, are also a growing problem for logistics operators that want to build new sheds or install chargers for electric trucks.
A recent DHL report found that 78% of UK businesses expect demand to outgrow their capacity. Logistics UK recently calculated that the sector underpins £356 billion of UK economic activity. It has called on the government to treat freight networks as enabling infrastructure. The new fund will be a test of whether that message has been heard.
What it means for the industry
For logistics property developers and operators, the first step will be to see which sites are chosen. Sites close to the strategic road network and to the regions named above could also create demand for new distribution space and transport services.
The Accelerator also comes shortly after the Budget, which changed capital allowances for companies planning investment. Industry groups will now watch whether freight access is built into the plans for the new sites from the start, rather than added later.
