The UK's new government, led by Prime Minister Keir Starmer, has initiated a plan to bolster public and private investment by creating a National Wealth Fund. This fund will work alongside existing state-owned agencies and unlock immediate funding.

Starmer, along with Finance Minister Rachel Reeves, aims to attract substantial private capital into emerging industries to accelerate economic growth and achieve net-zero targets.

The government will allocate an additional £7.3 billion through the UK Infrastructure Bank, hoping to attract three times as much from private investors. The funds will target sectors like ports, hydrogen, automotive, and steel. The British Business Bank will also align with this new initiative.

To meet net-zero targets, the UK needs £50-£60 billion in additional annual investment. The government will solidify the National Wealth Fund through new legislation, ensuring its permanence and clarifying its role for investors.

UK Steel Director General, Gareth Stace, expressed optimism about collaborating with the new government to bolster the UK steel industry. Stace highlighted the government will invest £2.5 billion in steel through the National Wealth Fund, noting that it will be instrumental in revitalizing UK steelmaking. He emphasized that creating a competitive business environment is essential for making the UK an attractive investment destination, positioning steel as the backbone of a robust British economy.