Labour chancellor Rachel Reeves has earmarked £7.3 billion in state funding for a new ‘National Wealth Fund’ targeted at private-sector businesses.
Announcing the plans alongside a nine-strong taskforce at Number 11, Reeves stated: “I have previously committed to establishing a National Wealth Fund. I am now going further by bringing together key institutions.
“We need to go further and faster if we are to fix the foundations of our economy to rebuild Britain and make every part of our country better off.
“That is why in less than a week we are establishing a new National Wealth Fund and bringing together the key institutions that will help unlock investment in new and growing industries.”
The taskforce includes a number of high-profile business leaders, including former Bank of England governor Mark Carney, Barclays PLC (LSE:BARC) boss C.S. Venkatakrishnan and Aviva plc boss Amanda Blanc.
Establishing the fund will require a restructuring of the existing UK Infrastructure Bank and British Business Bank.
"Britain is open for business – and the work of change has begun," said Reeves.
Net-zero and infrastructure projects have been flagged as industries of focus.
Energy security and net-zero secretary Ed Miliband said: Our mission to make Britain a clean energy superpower is about investing in Britain.
“Our National Wealth Fund will help create thousands of jobs in the clean energy industries of the future to boost our energy independence and tackle climate change.”
Further details will be set out ahead of the government’s international investment summit later this year.