09 July 2024 News

New National Wealth Fund to usher in new era for private investment

Equitix met with the Chancellor and other members of the Taskforce to discuss our recommendations as set out in the NWF’s report and next steps. Given the importance of private investors to the success of the NWF, the Taskforce are keen to play an ongoing role in providing advice to support implementation of the National Wealth Fund.

Hugh Crossley, Equitix CEO said: “The NWF will play an important role in driving economic growth through attracting private capital, creating green jobs and supporting the UK’s transition to a low carbon economy. We have welcomed the opportunity to be part of the initial taskforce working with the Labour party. The Equitix team look forward to working with Ministers and government departments to help deliver the NWF and accelerating broader investment into UK infrastructure.”

Chancellor Rachel Reeves announces establishment of the National Wealth Fund to kickstart economic growth.

National Wealth Fund will simplify the UK’s fragmented landscape of support for businesses and investors, bringing critical institutions like the UK Infrastructure Bank and British Business Bank closer together.

This will create a step change in our ability to mobilise private capital into the UK’s most important sectors and assets, creating thousands of jobs across the country.

The Chancellor Rachel Reeves today (9 July) supercharged growth in the green industries of the future with the establishment of the National Wealth Fund (NWF).

Boosting investment into the economy is an urgent priority for the government’s growth mission. To generate the investment that this country needs, the National Wealth Fund will ensure every pound invested by UK public finance institutions unlocks maximum private investment.

The National Wealth Fund will bring together key institutions like the UK Infrastructure Bank (UKIB) and the British Business Bank closer together to create a single coherent offer for businesses and a compelling proposition for investors, to mobilise billions more in private investment.

The NWF will deploy funding through the UK Infrastructure Bank so investments can start being made immediately, expanding its remit to focus on further priority sectors, and providing an additional £7.3 billion to catalyse private investment at an even greater scale. As part of the NWF, reforms will also be made to the British Business Bank to ensure it can mobilise the UK’s deep pools of institutional capital, harnessing its capacity as the UK’s largest investor in venture capital. This will unlock billions of pounds of investment in the UK’s world-leading green and growth industries.

Today Rachel Reeves convened the National Wealth Fund Taskforce at No11 Downing Street and welcomed the report which sets out proposals for the design and delivery of the NWF.

Chaired by the Green Finance Institute, the group includes former Bank of England Governor Mark Carney, Barclays CEO C.S Venkatakrishnan, Aviva CEO Dame Amanda Blanc and large institutional investors.

Chancellor of the Exchequer Rachel Reeves said:

“Our National Wealth Fund is at the heart of our approach to grow the economy and create good jobs for everyone.

“Working in partnership with business, we will make transformative investments across every part of the country in the industries of the future”.

As one of her first actions, the Chancellor has tasked the Treasury to engage with industry, government departments and the UK’s public finance institutions themselves to rapidly set detailed plans in motion.

Further detail will be set out ahead of the government’s Global Investment Summit later in the year. In the meantime, these institutions will get on with what they do best – delivering financing and investment for businesses and infrastructure across the country.

Playing a central role in the government’s industrial strategy, the National Wealth Fund will make transformative investments across every part of the country supporting thousands of good jobs across the country and making everyone better off.

The government will bring forward new legislation as soon as parliamentary time allows to cement the National Wealth Fund in statute, making it a permanent institution at the heart of the country’s long-term growth and prosperity.

The NWF will also work with local partners including Mayors to bring together a finance and investment offer that supports the needs of local areas and catalyses growth in all corners of the country.

The UK’s public finance institutions have proven track records in crowding in private investment and generating returns for the taxpayer. Since it was established 3 years ago, the UK Infrastructure Bank has committed over £3.3 billion and unlocked nearly [£11 billion] in private investment.

The British Business Bank, which supports SME to grow by improving their access to finance, has unlocked £12.4 billion of finance, and in 2023 alone funded over 23,000 UK businesses supporting the creation of over 39,000 jobs.

Download the National Wealth Fund Taskforce Report.