The government has unveiled plans for a new National Wealth Fund (NWF) to be headquartered in Leeds, marking a significant shift towards economic stability and growth in the UK.
Chancellor of the Exchequer Rachel Reeves announced the initiative during her closing speech at the International Investment Summit on Monday, signaling the end of what she called a period of economic instability.
Speaking to leading global businesses, Reeves promised that the government would work in "true partnership" with the private sector to foster economic growth. She emphasized that the government is committed to creating a tax system that supports investment and wealth creation, as speculation continues over potential tax changes ahead of her first budget, scheduled for October 30.
During her speech, Reeves highlighted the government's intention to boost employment and economic opportunities nationwide. "When we said we would end instability, make growth our national mission, and form a genuine partnership with business, we meant it," she stated. She acknowledged that the decisions ahead will not always be easy but stressed the importance of making the right choices to drive investment and create jobs.
As part of the government’s strategy to enhance long-term investment in the UK, Reeves announced the transformation of the existing UK Infrastructure Bank, also based in Leeds, into the new National Wealth Fund. With £27.8 billion earmarked for investment in clean energy and growth industries, the NWF will focus on catalyzing private investment across key sectors, going beyond infrastructure projects alone.
John Flint, who has led the UK Infrastructure Bank since 2021 and will take the reins as head of the NWF, expressed his confidence in the fund's ability to mobilize private finance. "Building on the strong foundations we have laid, we are ready to unlock billions of pounds in private finance for projects across the UK, supporting the government’s growth ambitions," he said.
In addition to the NWF, Reeves also announced the creation of the British Growth Partnership within the British Business Bank (BBB). This initiative aims to bring institutional investors, such as pension funds, together with the BBB to make long-term, commercially viable investments by 2025. Encouraging British pension funds to invest more in domestic ventures is a priority for the new government, building on efforts made by the previous administration.
Louis Taylor, CEO of the British Business Bank, praised the initiative, noting that it will support the UK’s most innovative and fastest-growing companies. He also highlighted reforms to the bank's financial framework, which will allow for the reinvestment of returns into growth-focused programs.
The business community welcomed the government's announcements. Dame Julia Hoggett, CEO of the London Stock Exchange, said the British Growth Partnership would provide UK businesses with greater access to domestic capital. Lisa Quest, UK managing director at Oliver Wyman, called the NWF a "significant milestone" for the UK economy.
Local leaders in Leeds, including MP Mark Sewards, also celebrated the news. Sewards expressed his excitement on social media, stating that the new NWF would bring significant investment and growth to the region, create better jobs, and contribute to rebalancing the UK economy. "This move will unlock investment and growth right across Yorkshire and the UK," he said.
The government's initiatives signal a renewed focus on economic stability and job creation, with Leeds now at the heart of its strategy to foster long-term prosperity across the country. Photo by Chris McAndrew, Wikimedia commons.