According to The Guardian, Chancellor Rachel Reeves has launched the UK's new £7.3 billion National Wealth Fund (NWF) to drive private sector investment into critical infrastructure projects. This fund seeks to leverage £3 of private investment for every £1 of public funding, targeting sectors such as clean energy, green steel, gigafactories, ports, carbon capture, and hydrogen.
Reeves emphasised a clear distinction between the NWF and GB Energy, another publicly owned company proposed by Labour. While GB Energy will focus on the “production of clean, low carbon energy,” investments made via the NWF will deploy £1.8bn to ports, £1.5bn for gigafactories including electric vehicles, £2.5bn to clean steel, £1bn for carbon capture, and £500m to green hydrogen.
Amid political uncertainty in other major Western economies, such as the US and France, Reeves stated that the UK is in a prime position to attract investment. "I think for the first time in a long time, investors will look at Britain and say it’s a country with a stable government. It has a clear plan but a clear mandate for the election. And that’s different from other countries today," she told journalists.
The NWF will soon be established formally in UK law, making it a “permanent institution at the heart of the country’s long-term growth and prosperity,” according to the Treasury. Details about the formal head of the NWF will be provided before an international investment summit hosted by the chancellor later this year.
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