Europe, UK (Commonwealth Union) – The Government has unveiled new plans to consolidate major institutions within the National Wealth Fund, aiming to stimulate growth and attract investment.
Chancellor Rachel Reeves and Business Secretary Jonathan Reynolds have directed officials to start the process of merging the UK Infrastructure Bank and the British Business Bank into a newly established National Wealth Fund. This fund will focus on investing in emerging industries.
The announcement coincides with a meeting of the National Wealth Fund Taskforce at No11 Downing Street, chaired by the Green Finance Institute. The meeting, attended by Chancellor Reeves and Ed Miliband, Secretary of State for the Department for Energy Security and Net Zero, marks the beginning of this initiative.
The Taskforce includes notable figures such as former Bank of England Governor Mark Carney, Barclays CEO C.S. Venkatakrishnan, Aviva CEO Dame Amanda Blanc, and other major institutional investors.
The Government’s new strategy aims to unify key institutions and create an attractive opportunity for investors, thereby mobilizing billions in private investment and delivering returns for taxpayers.
An extra £7.3 billion is set to be made available via the UK Infrastructure Bank to enable immediate investment, focusing on priority sectors and enhancing private investment on a larger scale. This funding is supplemental to the existing UKIB funding.
As part of the National Wealth Fund, reforms will be implemented for the British Business Bank, which is managed by the Department for Business and Trade. These reforms aim to tap into the UK’s extensive institutional capital, leveraging the bank’s investment pipeline and its status as the country’s largest venture capital investor.
The government indicated that this initiative will unlock billions of pounds for investment in the UK’s leading green and growth industries.
“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,” said Chancellor of the Exchequer Rachel Reeves.
