National Wealth Fund to bring together existing bodies

UK Infrastructure Bank and the British Business Bank to be 'aligned' under investment plan
Rachel Reeves chairs first meeting of the National Wealth Fund Taskforce at 11 Downing Street. Photo: Associated Press/Alamy

By Tevye Markson

09 Jul 2024

The chancellor and business secretary has asked officials to begin setting up a national wealth fund which will "align" existing bodies.

The £7.3bn wealth fund, which is to be established within the next week, aims to attract billions of pounds in private investment into new, green and growing industries.

Treasury officials will work with civil servants in other government departments, industry and the UK’s public finance institutions “to rapidly set detailed plans in motion” for the wealth fund, according to a press release announcing the plans.

The UK Infrastructure Bank and the British Business Bank will be “aligned” under the National Wealth Fund, under the plans.

As the wealth fund is developed, the government will  "further examine the case for bringing together bodies from across the UK’s public finance institutions", the press release said.

In March, Reeves set up a taskforce, led by former governor of the Bank of England Mark Carney, to look into the establishment of the National Wealth Fund.

Announcing the establishment of the fund Rachel Reeves, 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.”

Energy security and net zero secretary Ed Miliband added that the plan would help to “make Britain a clean energy superpower” and “create thousands of jobs in the clean energy industries of the future to boost our energy independence and tackle climate change”.

Reeves and Miliband held the first meeting of the National Wealth Fund Taskforce at No.11 Downing Street today to kick-start the plans.

The Treasury said it will set out more details of the fund ahead of a planned global investment summit in early October.

The government will also bring forward new legislation when parliamentary time allows, to cement the fund in statute, “making it a permanent institution at the heart of the country’s long-term growth and prosperity”, the press release said.

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