The government has pledged £7.3bn in funding for a National Wealth Fund to attract private investment into UK infrastructure.
The Chancellor, Rachel Reeves, and the Business Secretary, Jonathan Reynolds, today (June 9) instructed officials to begin work to align two key institutions under a new National Wealth Fund to invest in the “new industries of the future”.
The government said aligning the UK Infrastructure Bank and British Business Bank, under the National Wealth Fund to “boost growth and unlock investment”.
It said £7.3bn of additional funding will be allocated through the UK Infrastructure Bank so investments can start being made immediately - in addition to existing funding.
Reeves said: “This new government is getting on with the job of delivering economic growth and I am 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.”
Under the government’s new plans, the fund will bring together key institutions and a "compelling proposition" for investors which will mobilise billions more in private investment and “generate a return for taxpayers”.
These immediate investments will focus on further priority sectors and catalysing private investment at an even greater scale.
As part of the fund, reforms are set to be made to the British Business Bank, which is overseen by the Department for Business and Trade.
The aim is to mobilise what the government called the UK’s "deep pools of institutional capital" by harnessing its pipeline of investments and track record as the UK’s largest investor in venture capital.
Further detail is due to be set out ahead of the government’s international investment summit later in the year.
The government also intends to bring forward new legislation when parliamentary time allows to cement the NWF in statute, making it a permanent institution.
tom.dunstan@ft.com
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