Chancellor Rachel Reeves has launched a £7.3 billion National Wealth Fund (NWF) as part of the Labour government’s strategy to attract substantial private sector investment for major infrastructure projects across the UK. This fund aims to stimulate projects like ports, gigafactories, hydrogen, and steel initiatives by leveraging private investment at a ratio of roughly £3 of private funds for every £1 of public money.
Reeves emphasised that the NWF would function as a “concierge service” for investors, streamlining their engagement with the UK. Managed by the UK Infrastructure Bank, under former HSBC chief executive John Flint, and supported by a revamped British Business Bank, the fund seeks to simplify and enhance investment processes for large-scale projects.
The NWF is set to allocate:
Reeves clarified that the NWF would be distinct from GB Energy, another Labour initiative focused on producing clean, low-carbon energy.
Reeves highlighted the UK's potential as a stable investment environment, especially given the political uncertainties in other major economies like the US and France. The NWF aims to position the UK as an attractive destination for global investors by providing a clear and stable plan for economic growth.
The NWF will soon be enshrined in UK law, ensuring its role in the country’s long-term economic strategy. Although a formal head has yet to be appointed, further details are expected to be released ahead of an international investment summit hosted by the Chancellor later this year.
The announcement followed a call between Business and Trade Secretary Jonathan Reynolds and over 170 senior business leaders. Reynolds outlined four key priorities:
Reynolds also committed to improving connectivity and the energy grid, addressing one of the primary concerns of businesses.
The £7.3 billion National Wealth Fund represents a significant effort by the Labour government to revitalise and modernise the UK’s infrastructure, aiming to attract substantial private investment and ensure long-term economic growth and stability. By addressing bureaucratic hurdles and providing targeted financial support, the government hopes to create a more appealing environment for both domestic and international investors.