07 Aug 2024
The UK government is planning a National Wealth Fund to stimulate private sector investment backed by £7.3 billion in funding through the UK Infrastructure Bank (UKIB).
Chancellor Rachel Reeves and Business Secretary Jonathan Reynolds have instructed officials to immediately begin work to create the new National Wealth Fund by bringing together the work of the UK Infrastructure Bank and the British Business Bank to unlock private sector investment to drive growth.
Under the plans, the National Wealth Fund will bring together key institutions and will target investors in a bid to 'mobilise billions more in private investment and generate a return for taxpayers'.
An additional £7.3 billion of funding will be allocated through the UKIB so investments can start being made immediately focusing on priority sectors, including green and growth industries, and catalysing private investment. This funding is in addition to existing UKIB funding.
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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