THE National Wealth Fund will unlock more than £70 billion in private investment to boost economic growth, advance clean energy and strengthen defence, chancellor Rachel Reeves said on Wednesday (19).
The fund's new strategy will prioritise clean energy, advanced manufacturing, digital technologies and transport sectors.
Investments will target projects across the UK including carbon capture, green hydrogen, gigafactories, green steel and ports.
Reeves has increased the fund's economic capital limit from £4.5bn to £7bn, allowing it to take on higher-risk projects that struggle to attract private finance. This change aims to accelerate economic growth throughout the country.
"My number one mission is kickstarting economic growth through our Plan for Change to make Great Britain a stronger, more resilient country and put more money into the pockets of working people," Reeves said.
"I am determined to go further and faster to get our economy growing. By directing tens of billions of pounds into the UK's industrial strengths, we'll deliver the high-skilled, high-paid jobs of the future in every corner of the country."
Since July last year, the fund has unlocked nearly £1.8bn in private investment and created 9,900 jobs in growth industries. Recent investments include £55 million for Connected Kerb to expand electric vehicle charging networks and £28.6m for Cornish Metals.
The announcement coincides with a new £9.6m investment in Solihull Council to improve heating infrastructure, reduce bills and provide low-carbon energy to town centre buildings.
The government has launched a recruitment campaign for a new CEO as John Flint prepares to step down this summer.
A new UK Strategic Public Investment Forum will be established to coordinate investments across public financial institutions including the National Wealth Fund, British Business Bank, UK Export Finance, Homes England, Innovate UK, Great British Energy and The Crown Estate.
Energy secretary Ed Miliband stressed the importance of clean energy investment: "Clean power is the economic opportunity of the 21st century – and through the National Wealth Fund we will seize this opportunity to invest in British industries and workers."
The National Wealth Fund will work closely with Great British Energy, the new publicly owned clean energy company, to boost Britain's energy security and reduce dependency on fossil fuels controlled by foreign states.
