Chancellor Rachel Reeves has announced the formation of a new National Wealth Fund and British Growth Partnership during her speech at the International Investment Summit on Monday. The Chancellor addressed the end of British economic instability and assured the return of investment and jobs to the country under the new Government.
In her address, Rachel Reeves highlighted a pledge to establish a solid partnership with businesses to drive growth and prosperity. She emphasised the Government’s commitment to creating a tax system that supports wealth creation and investment, fostering a conducive environment for businesses to thrive in the UK.
The Chancellor stressed on the importance of making strategic decisions to boost the economy, create new job opportunities, and drive investment nationwide. She expressed confidence in building a stronger Britain through collaborative efforts between the Government and businesses.
Rachel Reeves unveiled plans to transform the existing UK Infrastructure Bank in Leeds into the National Wealth Fund (NWF) with an initial investment of £27.8 billion. The NWF aims to focus on clean energy and growth industries, inviting significant private investment across key sectors.
Leading the National Wealth Fund, John Flint, highlighted the foundation laid by the UK Infrastructure Bank and its commitment to leveraging private finance for projects across the UK. The NWF is set to play a crucial role in supporting the Government’s growth plans and driving investments at a substantial scale.
Additionally, the Chancellor announced the formation of the British Growth Partnership within the British Business Bank (BBB). This initiative aims to bring together institutional investors like pension funds with the BBB to facilitate long-term, commercially viable investments by the end of 2025.
BBB chief executive Louis Taylor underscored the significance of the British Growth Partnership in encouraging UK pension funds to invest in innovative British companies, further solidifying growth and prosperity across the nation.
Prominent business figures, including London Stock Exchange CEO Dame Julia Hoggett and Oliver Wyman’s UK managing director Lisa Quest, have welcomed these announcements. The business community views the National Wealth Fund and British Growth Partnership as key milestones for bolstering the UK economy and creating a conducive investment landscape.