Labour pledge

Reeves unveils wealth fund to re-industrialise UK

Rachel Reeves
Rachel Reeves: promising 650,000 jobs (pic: Terry Murden / DB Media Services)

Shadow Chancellor Rachel Reeves will on Monday unveil detailed targets for Labour’s £7.3 billion National Wealth Fund, with a commitment to create 650,000 jobs.

The fund will be a central plank of the party’s Green Prosperity Plan, with every £1 invested by government unlocking at least £3 from the private sector.

Ms Reeves says the plan ‘will help to re-industrialise the UK’ with 650,000 jobs for plumbers, electricians, engineers and technicians created in the next five years across the country – the equivalent to 350 new jobs every day.

It includes £2.5 billion to rebuild the steel industry, £1.8bn for ports and the supply chain, £1.5bn in gigafactories, £1bn to accelerate carbon capture infrastructure and £500m to support the development of green hydrogen.

In March, Ms Reeves announced a task force of experts, including the former Governor of the Bank of England Mark Carney, to provide advice to the Labour Party on how to implement the National Wealth Fund. She will confirm on Monday that the Taskforce will be asked to report back shortly after the general election.  

Together with Shadow Business Secretary Jonathan Reynolds she will say that a future Labour government will hold a Global Investment Summit in the first 100 days to “hit the ground running” and bring investment back to Britain.

Attendees of Monday’s meeting will include chief executives Andrea Rossi (M&G); Charlie Nunn (Lloyds Banking Group);l and Mike Regnier (Santander UK).

Ms Reeves says she will seek closer trade ties with the EU as well as more foreign investment and has already prioritised setting up a national planning framework before Christmas so that housing targets are restored and wind farms and gigafactories face fewer obstacles to planning permission. 

Charlie Nunn
Charlie Nunn of Lloyds Banking Group will be at Monday’s meeting

She has suggested she could revise parts of Boris Johnson’s 2020 Brexit deal, including seeking closer alignment with EU rules in the chemicals and veterinary sectors, better touring rights for UK artists, and greater mutual recognition of qualifications for financial services workers.

“Labour’s plan for growth is about making Britain better off, with good jobs paying a decent wage being created right across the United Kingdom,” she said.

“The next Labour government will work hand in hand with the private sector to bring investment to Britain’s industrial heartlands and I have been clear that our National Wealth Fund will be a crucial tool in the armoury to deliver on this ambition.

“This election is about change: stability with a changed Labour Party that will make you better off or five more years of chaos from the Conservatives that will mean £4,800 more on your mortgage.”

SNP leader John Swinney says its manifesto, to be published this week, “will focus on the issues that matter most to people, offering a real vision of hope in stark contrast to the continuing despair being offered by Westminster.”

He says SNP MPs will” stand fully against public spending cuts – whether they are Tory cuts or Labour cuts.

“Instead, we will propose investment in our people and public services like our NHS – to build a sustainable economy which works for everyone.”

Labour’s Green Prosperity Plan promises new jobs across the country:Regional totals
 Clean Power/ NWFWarm Homes Plan 
North East27,0008,00035,000
North West54,00023,00077,000
Yorkshire and the Humber53,00018,00071,000
East Midlands31,00015,00046,000
West Midlands31,00019,00050,000
South East52,00025,00077,000
South West44,00017,00061,000
Northern Ireland12,0005,50017,500
National total656,500

The British Infrastructure Council was established in November to tackle infrastructure delivery challenges by working in partnership with the private sector to unlock capital. Membership includes:

  • Deepa Bharadwaj, Head of Infrastructure Investment for Europe, IFM Investors
  • Tracy Blackwell, CEO, Pension Insurance Corporation
  • Andy Briggs MBE, Group CEO, Phoenix Group
  • James Bryce, Head of Global Infrastructure, CPP Investments
  • Stephen Cohen, Head of EMEA, BlackRock
  • Rachel Elwell, CEO, Border to Coast
  • Vivian Nicoli, Managing Director, Head of European Infrastructure, CDPQ 
  • Charlie Nunn, Executive Director and Group Chief Executive, Lloyds Banking Group
  • Noel Quinn, Group Chief Executive, HSBC
  • Mike Regnier, CEO, Santander UK
  • Anne Richards, CEO, Fidelity International 
  • Andrea Rossi, Group Chief Executive, M&G

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