UK administration plans to consolidate UK Investment Bank into the National Wealth Fund.

The UK government has announced a significant merger between the UK Infrastructure Bank (UKIB) and the National Wealth Fund. The new institution, headquartered in Leeds, will be tasked with attracting private finance to sectors and technologies critical to the UK's clean energy and growth ambitions.

Chancellor Rachel Reeves made the announcement at an Investment Summit at the Guildhall in London. The merger aims to secure more private investment in UK infrastructure and the country's energy transition. The UK government initially pledged to commit £7.3bn to the new structure, with the goal of attracting £3 of private investment for every £1 contributed by the government. However, the UK government's contribution to the new entity is nearly £2 billion less than initially promised.

The role of the UK Infrastructure Bank will be taken over by the new institution, which will be aimed at strengthening infrastructure investment and supporting sustainable economic development in the UK. The new institution's targets include enhancing investment capacity, fostering innovation in infrastructure projects, and contributing to national welfare through efficient management of public assets.

The National Wealth Fund's remit now includes attracting private finance to sectors and technologies critical to the UK's clean energy and growth ambitions. The fund's remit will expand beyond UKIB's current infrastructure focus. Amanda Blanc, CEO of Aviva, has expressed support for the merger and is a part of the task force set up to kickstart the fund. Aviva is prepared to invest more in the UK to support economic growth, create jobs, and contribute to net zero emissions.

Blanc emphasized the need for closer collaboration between government and business to turn good ideas into investable projects. She also stressed the need for speed in turning good ideas into investable projects. The National Wealth Fund is expanding its team to bring in additional sector expertise to support its broader remit.

The merger will see the new National Wealth Fund managing approximately £27.8bn in assets. The changes will take effect immediately. The fund will be headquartered in Leeds, a move that is expected to boost the city's economy and position it as a leading hub for infrastructure and sustainable development.