The Chancellor began work just days into office to establish a new National Wealth Fund (NWF) that would invest in the new industries of the future to create good jobs and opportunity across every part of the country.
With £27.8 billion of firepower, the National Wealth Fund will help drive the government’s Plan for Change and turbocharge growth across the country to raise living standards in every part of the United Kingdom.
The jobs that have been created will support the digital and clean energy sectors, including 6,500 expected to be created in the retrofit sector across the UK, with the National Wealth Fund providing a financial guarantee that will see Lloyds and Barclays deliver £1 billion of funding to deliver improvements such as low carbon heating and insulation in social housing.
New figures reveal almost £1.6 billion of private investment has been leveraged into projects across the UK’s clean energy and growth sectors over the past six months. This includes to support faster broadband connections for thousands of businesses and households in Cornwall, Yorkshire, Lincolnshire and Cumbria, fuelling economic growth.
Millions of pounds have also been committed to help West Suffolk Council to decarbonise its buildings and transition its fleet to electric vehicles, alongside supporting the expansion of a successful rooftop solar scheme. This innovative investment model has the potential to be replicated by other local authorities and means more businesses can benefit from low cost, low carbon electricity, supporting local businesses and the growth of the clean energy sector.
It comes as today, the National Wealth Fund announces a loan of £92 million to support Denbighshire County Council’s crucial improvements to coastal flood defence barriers in Denbighshire, North Wales, protecting businesses and homes against the devastating impact of flooding, creating jobs and growth in the construction industry.
Chief Secretary to the Treasury, Darren Jones said:
Growth is our national mission, and the cornerstone of our Plan for Change that will improve living standards and put more money in people’s pockets.
And the National Wealth Fund is playing a vital part in delivering economic growth, securing over a billion of private investment since July in industries that turbocharge growth in our economy and create good quality jobs across the UK.
The Chancellor announced in October how the National Wealth Fund would drive long-term investment in Britain, working hand in hand with business to create new high skilled jobs right across the UK, helping make people better off.
To mobilise investment at pace, the NWF will expand on the UK Infrastructure Bank’s offer including additional financial instruments so it is more catalytic and will take on more risk to have a greater impact:
- The NWF has more capital with £27.8 billion – inheriting UK Infrastructure Bank’s £22 billion and having an additional £5.8 billion.
- It has a renewed focus to support the delivery of the wider industrial strategy and the Government’s clean energy and growth missions. At least £5.8 billion of the NWF’s capital will focus on the five sectors announced in the manifesto: green hydrogen, carbon capture, ports, gigafactories and green steel.
- The NWF will have increased resources and focus on conducting more outreach to identify expanded project pipelines and structure innovative transactions.
- It will have a strong regional mandate to unleash the full potential of our cities and regions.
