The National Wealth Fund will unlock more than £70bn in private investment to help deliver economic growth, make Britain a clean energy superpower and strengthen the defence sector, says chancellor Rachel Reeves.

The new strategic direction sets clean energy, advanced manufacturing, digital technologies and transport as new priority sectors for fund.

Money will be invested across the UK in projects including carbon capture, green hydrogen, gigafactories, green steel and ports. 

The chancellor’s steer will help direct investment to the industries the defence sector relies on - advanced manufacturing and digital and dual-use technologies.

The National Wealth Fund’s economic capital limit will also be increased from £4.5bn to £7bn, allowing it take on greater risk. This means it has more flexibility over its investments and can support more projects that struggle to access private finance.

Chancellor Rachel Reeves said: “My number one mission is kickstarting economic growth through our Plan for Change to make Great Britain a stronger, more resilient country and put more money into the pockets of working people.

“I am determined to go further and faster to get our economy growing. By directing tens of billions of pounds into the UK’s industrial strengths, we’ll deliver the high-skilled, high-paid jobs of the future in every corner of the country.”

Since July last year, the National Wealth Fund has unlocked 9,900 jobs and nearly £1.8bn of private investment in growth-driving industries like green energy and technology.

Investments include £55m for Connected Kerb to increase coverage of EV charging networks, a £28.6m investment into Cornish Metals and most recently a £9.6m investment for Solihull Council to improve the area’s heating infrastructure and reduce bills, providing low carbon heating, hot water and power to town centre buildings.

To lead this new chapter for the UK’s flagship public investor, the government has also launched a recruitment campaign for the National Wealth Fund’s next CEO.

John Flint will step down from the role of CEO in the summer after successfully seeing through the National Wealth Fund’s transition from the UK Infrastructure Bank.

The chancellor will also establish a new UK Strategic Public Investment Forum joining up the UK’s leading policymakers and public financial institutions including the CEOs of the National Wealth Fund, British Business Bank, UK Export Finance, Homes England, Innovate UK, and Great British Energy and The Crown Estate.

The forum – the first of its kind – will cooperate on delivering investments to the priority areas set out by the chancellor and will be tasked with ensuring the government is getting maximum impact for its investments. 

Stemming from this, the National Wealth Fund will work closely with Great British Energy to support its quick establishment as a publicly owned clean energy company that will boost Britain’s energy security making it a clean energy superpower, lower bills, create jobs, and grow the economy.

The partnership between Great British Energy and the National Wealth Fund will see the former bringing project development expertise as well as investment, and the latter providing finance, a model already being deployed in Japan and Denmark.