Rachel Reeves Unveils £70 Billion National Wealth Fund Transformation

British Finance Minister Rachel Reeves announced the creation of a £70 billion National Wealth Fund to drive investment and infrastructure development. The fund aims to accelerate economic growth and support the clean energy transition, utilizing a mix of private and public capital.

In a bold move aimed at revitalizing the nation's economy, British Finance Minister Rachel Reeves has declared the launch of the National Wealth Fund, a £70 billion initiative designed to spark investment and infrastructure projects across the UK.

Reeves, addressing her first budget under the Labour Party's governance, emphasized the fund's role in catalyzing private sector engagement to foster rapid economic growth and advance Britain's transition to clean energy sources. With its headquarters in Leeds, the fund aims to harmonize efforts among industry partners and local authorities.

The newly minted fund will absorb £22 billion from the pre-existing UK Infrastructure Bank and bolster its capital with an additional £5.8 billion in government funding. Expanding beyond traditional infrastructure projects, the fund will pioneer blended finance solutions, allowing government departments to mitigate risk and expedite necessary regulatory reforms, as championed by Prime Minister Keir Starmer.

(With inputs from agencies.)