The UK government is set to launch a National Wealth Fund to boost private sector investment, supported by £7.3 billion in funding from the UK Infrastructure Bank (UKIB). Chancellor Rachel Reeves and Business Secretary Jonathan Reynolds have tasked officials with establishing the new fund by integrating the efforts of the UK Infrastructure Bank and the British Business Bank to unlock additional private investment and drive economic growth.
The National Wealth Fund aims to unite key institutions and attract investors to mobilise significant private investment while delivering returns for taxpayers. An extra £7.3 billion will be allocated through the UKIB, enabling immediate investments in priority sectors such as green and growth industries, and enhancing private sector contributions. This new funding is in addition to the existing resources provided by the UKIB.
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.
‘That is why in less than a week we are establishing a new National Wealth Fund and bringing together the key institutions that will help unlock investment in new and growing industries.
‘Britain is open for business – and the work of change has begun.’
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