The Chancellor of the Exchequer Rachel Reeves has said the National Wealth Fund will take on “higher risk projects” to deliver economic growth, clean energy and transport schemes.
It plans for the National Wealth Fund to unlock more than £70 billion in private investment to help deliver economic growth, with clean energy, advanced manufacturing, digital technologies, and transport as new priority sectors for the National Wealth Fund.
Money will be invested in carbon capture, green hydrogen, gigafactories, green steel and ports, as well as other technologies and defence, according to the government.
The National Wealth Fund’s economic capital limit will also be increased from £4.5 billion to £7 billion, allowing it take on greater risk. This means it has more flexibility over its investments and can support more projects that struggle to access private finance. It also said it has launched recruitment for a new National Wealth Fund CEO.
The news comes as details about Great British Energy’s developer mandate have also been released. Through the partnership between Great British Energy and the National Wealth Fund, it will see the former bringing project development expertise as well as investment, and the latter providing finance, a model already being deployed in Japan and Denmark.
Investment has already started flowing into priority sectors including £55 million for Connected Kerb to increase coverage of EV charging networks.
The Chancellor’s strategic steer comes as a new £9.6 million National Wealth Fund investment was announced today for Solihull Council to improve the area’s heating infrastructure and reduce bills, providing low carbon heating, hot water and power to town centre buildings.
John Flint will step down from the role of CEO in the summer after successfully seeing through the National Wealth Fund’s transition from the UK Infrastructure Bank.
The Chancellor will also establish a new UK Strategic Public Investment Forum joining up the UK’s leading policymakers and public financial institutions, including the CEOs of the National Wealth Fund, British Business Bank, UK Export Finance, Homes England, Innovate UK, Great British Energy and The Crown Estate.
The forum will cooperate on delivering investments to the priority areas set out by the Chancellor and will be tasked with ensuring the Government is getting maximum impact for its investments.
Chancellor of the Exchequer, Rt Hon Rachel Reeves MP, said:
“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.”
“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.”
Secretary of State for Energy Security and Net Zero, Rt Hon Ed Miliband MP, said:
“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.
“We are delivering our clean energy superpower mission to make our country energy secure and deliver the good jobs that the British people deserve.”
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