King's Speech 2024 - National Wealth Fund Bill

National Wealth Fund Bill

• The National Wealth Fund (NWF) will be central to this Government's mission to deliver growth and a greener economy. Capitalised with an additional £7.3 billion, the NWF will make transformative investments across every part of the country - mobilising billions of pounds worth of additional private sector investment. 

• The Government has already begun work to align the UK Infrastructure Bank and the British Business Bank under the National Wealth Fund. The National Wealth Fund Bill will ensure this institution is at the heart of the country's mission to grow the economy and create wealth in every community. 

What does the Bill do? 

• The National Wealth Fund will play a central role in the Government's industrial strategy and growth and clean energy superpower missions making transformative investments across every part of the country supporting thousands of good jobs and making everyone better off, while generating a return for the taxpayer. It will directly invest in the priority sectors set out in the manifesto in every corner of the country. The NWF will work with local partners, including mayors, to bring together a finance and investment offer that supports the needs of local areas and catalyses growth in all corners of the country. 

• To ensure investments can start immediately, the Fund will deploy funding through the UK Infrastructure Bank, expanding its remit and providing an additional £7.3 billion to catalyse private investment at an even greater scale. It will aim to generate £3 of private sector investment for every £1 it invests.

• The National Wealth Fund will simplify the UK's fragmented landscape of support for businesses and investors, aligning critical institutions like the UK Infrastructure Bank and British Business Bank to create a step change in our ability to mobilise private capital in the industries of the future. 

• While we have already begun the work to align these institutions, the Bill will put the National Wealth Fund on a permanent statutory footing. Aligning these institutions under the National Wealth Fund will create a single coherent offer for businesses and a compelling proposition for investors, to smartly deploy public capital to unlock investment opportunities.

Territorial extent and application 

• The Bill will extend and apply UK-wide.

Key facts

• Business investment in the UK has been persistently low, holding back productivity and living standards. Generating more investment is an urgent priority for the Government's growth and clean energy superpower missions. The Climate Change Committee have called for an additional £50 billion of investment a year by 2030. 

• The UK Infrastructure Bank has a clear track record in crowding in private investment and supporting investment projects. In just three years, The UK Infrastructure Bank has invested over £3 billion, unlocking nearly £11 billion in private investment. The National Wealth Fund seeks to capitalise on this strategic expertise and provide an improved and more expansive offer to private investors with a clear link to projects essential to delivering national missions and long-term industrial strategy.

• The British Business Bank, which supports SMEs to grow by improving their access to finance, supports £12.4 billion of finance into SMEs, and in 2023 alone funded over 23,000 UK businesses supporting the creation of over 39,000 jobs.

• With the additional £7.3 billion of capital for the National Wealth Fund we will aim to crowd in a further £20 billion into priority sectors. The government also has other commitments on net zero that will help make Britain a clean energy superpower. The Green Prosperity Plan will help make British businesses more competitive, cut household energy bills, and create new jobs – all of which will enhance the UK's ability to leverage green investment.