The UK Infrastructure Bank (UKIB) is set to evolve into the National Wealth Fund (NWF), following an announcement by chancellor Rachel Reeves at the International Investment Summit in London.
This transition marks a significant shift in focus from the UKIB, expanding the organisation’s scope beyond infrastructure to align with the government’s Industrial Strategy, which was unveiled yesterday.
The UKIB passed into law in early 2023 and was intended to support the development of major infrastructure that would address climate change and support local and regional growth. Projects backed by UKIB include Portsmouth Water’s Havant Thicket Reservoir and a lithium extraction mine in Cornwall.
The NWF was launched by the new government shortly after coming into office this summer with similar intentions. With a substantial capitalisation of £27.8bn, the NWF aims to stimulate private market investment, supporting initiatives crucial to the UK’s growth and clean energy targets, the government said.
Headquartered in Leeds, the NWF plans to broaden its team, bringing in sector-specific expertise to enhance its new mandate. While fostering private sector investments, the fund will maintain its advisory and lending services to local authorities, strengthening collaborations with regional leaders to bolster economic growth.
The NWF will also play a more strategic role in forming partnerships with government departments, aiming to accelerate policy development and market growth through shared investment expertise. A key focus will be on drawing in private finance to critical sectors and technologies, aligning with the nation’s clean energy objectives.
Further information regarding the NWF’s strategic priorities and success metrics is expected before the next financial year. The chancellor described the development as a pivotal step towards sustainable growth and national prosperity.
NWF Fund CEO (and former CEO of UKIB) John Flint said: “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.”
Industry leaders have responded positively to the announcement.
Equitix CEO Hugh Crossley said: “It has been a pleasure to work with the chancellor and fellow members of the Task Force on this initiative. I believe the NWF is in safe hands utilising the platform and structures already in place at the UKIB.
“Equitix is a very significant investor in UK infrastructure, it has an established working relationship with UKIB and stands ready to support and invest alongside the government to grow the economy through green investment.”
Aviva CEO Amanda Blanc and Legal & General Group CEO Antonio Simoes also voiced their support, highlighting the potential of the NWF to drive green investment and economic growth.
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