The UK Infrastructure Bank (UKIB) will transition into the National Wealth Fund (NWF), expanding its role to support the government's industrial strategy, Chancellor Rachel Reeves announced at the International Investment Summit in London. The NWF will be capitalized with £27.8 billion, aimed at catalyzing private investment and stimulating growth in critical sectors.
The NWF will broaden its mandate beyond infrastructure, drawing on additional financial capacity and a larger risk budget. It will also grow its team from its Leeds headquarters to secure sector-specific expertise. Alongside continuing its advisory services and market-leading lending to local authorities, the NWF will strengthen partnerships with regional mayors to support the government's growth agenda.
The new organization will play a more active role in collaborating with government departments, integrating investment expertise with policy development to accelerate market growth. It will focus on attracting private finance to sectors and technologies vital to the UK's clean energy and economic ambitions.
Chancellor Rachel Reeves emphasized the significance of the transition, stating, “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.”
John Flint, chief executive of the NWF, expressed enthusiasm for the expanded remit, saying, “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.”
Industry leaders have also welcomed the move. Equitix chief executive Hugh Crossley noted, “I believe the NWF is in safe hands utilising the platform and structures already in place at the UKIB,” while Aviva CEO Amanda Blanc called the announcement “a significant step in the right direction” for closer collaboration between government and business to deliver growth and net zero targets.
Further details on the NWF's role in delivering the Industrial Strategy will be provided in a forthcoming statement of strategic priorities before the next financial year.
