Labour has announced a National Wealth Fund to attract private investment for future industries. Chancellor Rachel Reeves and Business Secretary Jonathan Reynolds have instructed officials to combine the UK Infrastructure Bank and the British Business Bank. The National Wealth Fund Taskforce, chaired by the Green Finance Institute and composed of Mark Carney, C.S Venkatakrishnan, Dame Amanda Blanc, and institutional investors, will convene at No.11 Downing Street, along with Ed Miliband, Secretary of State for the Department for Energy Security and Net Zero to begin the work.
The government plans to generate a return for taxpayers by mobilising billions in private investment and offering £7.3bn in funding through the UK Infrastructure Bank to invest immediately. Additionally, reforms to the British Business Bank will encourage institutional capital and venture capital investment, unlocking billions of pounds for the growth and green industries.
Labour leader Keir Starmer and Deputy Prime Minister Angela Rayner have met with regional mayors at Downing Street to reset the relationship between local and central government. The NWF will become a permanent institution and receive legislation when possible. The fund will partner with mayors and local authorities to support regional growth.
In a statement, Reeves expressed her commitment to delivering economic growth, with Labour “getting on with the job” and establishing a National Wealth Fund. She further noted the need to move faster and further to fix the economy’s foundation to bolster Britain and enhance every part of the country. The government wants to promote the country as open for business and begin the work of change.
