UK authorities plan to incorporate UK Investment Bank into the National Wealth Fund.

The UK government has announced a significant shift in its financial strategy, merging the UK Infrastructure Bank (UKIB) with the National Wealth Fund. This move, announced by Chancellor Rachel Reeves today, aims to attract private finance to sectors and technologies critical to the UK's clean energy and growth ambitions.

The new National Wealth Fund will be headquartered in Leeds and will manage approximately £27.8bn in assets, an increase from the UKIB's current £22bn. The changes will take effect immediately, and the fund's remit will expand beyond UKIB's current infrastructure focus.

The announcement was made at an Investment Summit at the Guildhall in London. Aviva CEO Amanda Blanc, who has been vocal about the need for closer collaboration between government and business, welcomed the merger as a "significant step in the right direction."

Blanc emphasised the need for greater speed to turn good ideas into investable projects that can make a real difference. She also expressed her company's readiness to invest more, with Aviva aiming to help boost growth, create jobs, and deliver net zero in the UK.

The task force established to initiate the National Wealth Fund includes key government officials and financial experts. Major national banks and large industrial corporations have also expressed readiness to make additional investments in the fund.

Closer collaboration between government and business is indeed needed, according to Blanc. She highlighted the importance of the new National Wealth Fund's broader remit, which now includes attracting private finance to sectors and technologies critical to the UK's clean energy and growth ambitions.

The UK government's contribution to the new entity will be nearly £2 billion less than initially promised. Despite this, the government has confirmed that it will expand the National Wealth Fund's team to bring in additional sector expertise to support its broader remit.

This merger and the expansion of the National Wealth Fund's remit are part of the UK government's efforts to accelerate the transition to a net-zero economy and support the growth of critical sectors. The fund will play a crucial role in attracting private finance to these sectors and technologies, helping to drive innovation, create jobs, and contribute to the UK's economic growth.

UK authorities plan to incorporate UK Investment Bank into the National Wealth Fund.