The UK Infrastructure Bank (UKIB) is becoming the National Wealth Fund (NWF), as announced by the Chancellor Rachel Reeves at the International Investment summit in London today.
The new NWF will expand UKIB’s remit beyond infrastructure in support of the government’s industrial strategy.
With additional financial capacity and an enhanced risk budget, the NWF will be capitalised with £27.8bn to catalyse private investment in the market.
The NWF will expand its team from its Leeds headquarters, securing additional sector expertise to support its new remit. Alongside boosting its private sector investments, it will continue to provide commercial and financial advisory services and market leading lending to local authorities, further strengthening its partnerships with mayors to support the government’s growth ambitions.
The new organisation will also take on a more sophisticated partnership role with government departments, bringing investment expertise and policymaking closer together, to accelerate policy development which supports and grows the market.
The NWF will continue to make private sector investments against a clear set of principles, with a focus on crowding in private finance to sectors and technologies which are critical to the UK’s clean energy and growth ambitions.
Whitehall will set out further details of the NWF’s role in delivering the Industrial Strategy in a statement of strategic priorities, as well as reviewing the organisation’s success metrics, before the next financial year.
Chancellor of the Exchequer Rachel Reeves (pictured) said: “Today’s announcements are the first step in delivering on this government’s central mission to secure sustainable growth, rebuild Britain and make every part of the country better off.”
NWF chief executive John Flint added: “It is a huge privilege to be entrusted with the responsibility of leading the National Wealth Fund.
“Building on the strong foundations we have laid as UKIB, we will hit the ground running, using sector insight and investment expertise that the market knows and trusts to unlock billions of pounds of private finance for projects across the UK.
“With additional capital to deploy against a bigger mandate, we stand ready to help the market invest with confidence, in support of the government’s growth ambitions.”
Equitix chief executive Hugh Crossley said: “It has been a pleasure to work with the Chancellor and fellow members of the Task Force on this initiative.
“I believe the NWF is in safe hands utilising the platform and structures already in place at the UKIB. Equitix is a very significant investor in UK infrastructure, it has an established working relationship with UKIB and stands ready to support and invest alongside the government to grow the economy through green investment.”
Aviva chief executive Amanda Blanc said: “At Aviva we are backing the UK and stand ready to invest even more to help boost growth, create jobs and deliver net zero.
“We now need closer working between government and business and greater pace to turn good ideas into investable projects which can make a difference.
“Today’s National Wealth Fund announcement is a significant step in the right direction.”
Legal & General group chief executive Antonio Simoes added: “Building a clean, secure energy supply is fundamental to the UK’s economic growth.
“The NWF will form an important part of the wider ecosystem that is catalysing private capital and investment into green infrastructure and industries, together enabling the path to net zero.”