UK Infrastructure Bank rebranded as National Wealth Fund
The decision was unveiled by Chancellor Rachel Reeves at the National Investment summit in London yesterday.
The £22bn UK Infrastructure Bank was established in 2021 with its main HQ based in Leeds. It was created to act as a co-investor alongside private businesses ‘helping to tackle climate change and supporting regional and local economic growth’.
However, Reeves decided to re-launch the organisation in a bid to bolster the government’s plans of establishing a ‘UK energy superpower’ alongside the creation of the £8bn Great British Energy in Aberdeen.
In a statement, Reeves said: ‘[The] 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.’
The National Wealth Fund (NWF), which stands at £27.8bn, is now expected to expand its team and boost its private sector investments – it will continue to provide commercial and financial advisory services and market lending to local authorities.
Though, the additional £5.8bn falls short of former pledges to capitalise the NWF with £7.3bn with a view to raising three times as much from the private sector. But, a Treasury official told the Financial Times it would invest a further £1.5bn in greener upgrades including clean steel, gigafactories, carbon capture and green hydrogen.
John Flint, CEO at the NWF, 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.’
Meanwhile, Amanda Blanc, CEO at Aviva, has also expressed her enthusiasm for the new initiative.
‘At Aviva we are backing the UK and stand ready to invest even more to help boost growth, create jobs and deliver net zero,’ Amanda said. ‘We now need closer working between government and business and greater pace to turn good ideas into investable projects which can make a difference. [The] National Wealth Fund announcement is a significant step in the right direction.’
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