UK's Reeves plans to catalyse 70 bln stg through the new National Wealth Fund
LONDON, Oct 30 (Reuters) -British finance minister Rachel Reeves said on Wednesday she would catalyse 70 billion pounds ($90.57 billion) through the newly created National Wealth Fund to spur investment and build new infrastructure.
"We are catalysing 70 billion pounds of investment through the National Wealth Fund," Reeves said as she announced the Labour Party's first budget in almost 15 years.
Designed to mobilise private sector capital to help speed up economic growth, the Leeds-headquartered fund is expected to support Britain in its clean energy transition.
Earlier this month, Reeves said the NWF, established following Labour's election victory in July, would work with industry partners, including mayors, to deploy up to 27.8 billion pounds of capital.
Of that total, the fund inherited 22 billion pounds from the existing UK Infrastructure Bank while an additional 5.8 billion pounds of taxpayers' money was promised by the government.
The NWF will have a broader mandate than just infrastructure and will test "blended finance solutions" with private capital to allow government departments to take on additional risk, Reeves has said.
The fund's investment approach will be flexible with each opportunity assessed on a case-by-case basis, the government has said previously.
Private companies have complained that it takes too long to build the kind of infrastructure needed to bolster growth in Britain. Prime Minister Keir Starmer has promised a regulatory overhaul to address those concerns.
($1 = 0.7729 pounds)
Reporting by David Milliken and Sachin Ravikumar
Writing by Muvija M; Editing by Kate Holton
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