Chancellor launches National Wealth Fund

Jul 10, 2024

The Government is establishing a National Wealth Fund to boost private sector investment, backed by £7.3bn from the UK Infrastructure Bank. Chancellor Rachel Reeves and Business Secretary Jonathan Reynolds have directed officials to integrate the UK Infrastructure Bank and the British Business Bank to drive growth by mobilising private investment and generating taxpayer returns.

The National Wealth Fund will immediately allocate £7.3bn to priority sectors like green industries. Reforms to the British Business Bank will ensure it can attract institutional capital and leverage its venture capital expertise.

A task force, led by Chancellor Reeves and Energy Secretary Ed Miliband, has begun developing detailed plans. New legislation will establish the fund as a permanent institution, supporting local growth through partnerships with regional leaders.

Since its inception, the UK Infrastructure Bank has committed £3.3bn, unlocking nearly £11bn in private investment. The British Business Bank has unlocked £12.4bn in finance, aiding over 23,000 businesses and creating over 39,000 jobs in 2023.

The Chancellor said:

"This new Government is getting on with the job of delivering economic growth. I have been clear that there is no time to waste.

"I have previously committed to establishing a National Wealth Fund. I am now going further by bringing together key institutions.

"We need to go further and faster if we are to fix the foundations of our economy to rebuild Britain and make every part of our country better off.

"Britain is open for business - and the work of change has begun."

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