Our verdict
The government has set up a National Wealth Fund, rebranding the UK Infrastructure Bank in October 2024.
The government has set up a National Wealth Fund, rebranding the UK Infrastructure Bank in October 2024.
In its manifesto Labour said it would “establish a National Wealth Fund” which “will have a remit to support Labour’s growth and clean energy missions, making transformative investments across every part of the country”. It said the fund would “have a target of attracting three pounds of private investment for every one pound of public investment, creating jobs across the country”.
The manifesto also said £7.3 billion-worth of capital would be allocated to the fund over the course of the parliament. We’ve written more about that pledge here.
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A National Wealth Fund was set up on 14 October 2024, with the formal rebranding of the UK Infrastructure Bank (UKIB) and an announcement that the new fund will work alongside the British Business Bank.
The UKIB was a development bank owned by the Treasury. It was established in 2021 and at that time assigned £22 billion of infrastructure finance to “tackle climate change and support regional and local economic growth across the UK”.
The British Business Bank is an economic development bank owned by the Department for Business and Trade. It was established in 2014 and helps smaller businesses access finance from its partners (such as banks, leasing companies or venture capital funds).
The government has confirmed the National Wealth Fund will inherit the UKIB’s £22 billion of capital, and receive an additional £5.8 billion over the course of this parliament.
It said the remaining £1.5 billion of the £7.3 billion set out in its manifesto would be “reserved to maintain flexibility in how the government can best deliver against its aims for the NWF”.
The government has also committed to bringing forward a National Wealth Fund Bill which it says will “put the National Wealth Fund on a permanent statutory footing”, but this has not yet been formally introduced in Parliament. The government has not committed to a specific timeframe for this, instead saying it will do so “when parliamentary time allows”.
As we develop this Government Tracker we’re keen to hear your feedback. We’ll be keeping the Tracker up to date and adding more pledges in the coming months.
Full Fact is monitoring the government’s delivery on its promises
Progress displayed publicly—so every single person in this country can judge our performance on actions, not words.
Sir Keir Starmer, Prime Minister – 24 September 2024