Ahead of her speech next week on the Government’s Plan for Growth[1], the Chancellor of the Exchequer – Rachel Reeves MP – has announced a package of investment reforms to spur regional growth across the country and attract investment into all corners of the UK. This includes a new approach across the National Wealth Fund (NWF) and the Office for Investment (OfI), which will work with local leaders across the UK to support places to build pipelines of incoming investment and projects linked to regional growth priorities.[2]
What are the key investment reforms?
The Chancellor has announced a new approach through the National Wealth Fund (NWF) and the Office for Investment (OfI), designed to work closely with local leaders to build pipelines of investment opportunities. This means a more targeted, locally driven strategy for fostering economic growth, aligning investment with regional needs, and unlocking potential across multiple sectors.[3]
How will strategic partnerships boost regional growth?
The National Wealth Fund will trial Strategic Partnerships in key regions: Greater Manchester, West Yorkshire, West Midlands, and Glasgow City Region. These partnerships will offer hands-on support, financial guidance, and commercial expertise to help these areas attract and sustain long-term investment. This initiative is expected to significantly impact sectors such as technology, manufacturing, and green energy.[4]
What has the national wealth fund achieved so far?
In just six months, the NWF has created 8,600 jobs and unlocked nearly £1.6 billion in private investment. These funds have been directed toward crucial industries, including green technologies, digital infrastructure, and advanced manufacturing, demonstrating the fund’s tangible impact on regional economies.[5]
How is the Government supporting local leaders?
The Government is engaging directly with local leaders to tailor strategies that address specific regional economic needs. The OfI will pilot a new approach in the Liverpool City Region and North East Combined Authorities to help regions develop commercially viable investment opportunities, connecting them to central government and industry expertise.[6]
Why is Glasgow a key focus for investment?
Recognising Scotland’s potential for growth, the Government is launching investment initiatives in Glasgow as part of its broader national strategy. These efforts align with the UK’s commitment to clean energy and industrial expansion, ensuring Scotland’s cities play a central role in driving economic prosperity.[7]
How will investment improve living standards?
The Government’s Plan for Change aims to harness the productivity of major cities like Manchester, Birmingham, Leeds, and Glasgow. If these cities reach the national average for productivity, the UK economy could gain an additional £33 billion in Gross Value Added (GVA) annually, leading to higher wages and better living standards.[8]
What role does devolution play in this strategy?
A key part of the initiative is empowering local leaders with more autonomy. The Devolution Priority Programme ensures regional mayors have the necessary powers to implement economic strategies tailored to their communities. Success stories like Greater Manchester’s Adult Skills Fund and the Bee Network show how devolved powers are already delivering tangible benefits.[9]
What’s next for the UK’s investment agenda?
Further steps include reviewing the Green Book, which guides public investment decisions, to ensure fairness in regional funding allocation. Additionally, a new senior task force will work with regional leaders to explore further devolution opportunities in skills, transport, and business support, unlocking even greater economic potential.
With a strong commitment to regional investment and economic renewal, the UK Government’s latest initiative sets the stage for long-term, sustainable growth—ensuring prosperity is shared across every corner of the country.[10]
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[1] HM Treasury, Reeves: I am going further and faster to kick start the economy, 29 January 2025, Link
[2] HM Treasury, Chancellor unveils plan to turbocharge investment across the UK, 24 January 2025, Link
[3] HM Treasury, Chancellor unveils plan to turbocharge investment across the UK, 24 January 2025, Link
[4] HM Treasury, Chancellor unveils plan to turbocharge investment across the UK, 24 January 2025, Link
[5] HM Treasury, Chancellor unveils plan to turbocharge investment across the UK, 24 January 2025, Link
[6] HM Treasury, Chancellor unveils plan to turbocharge investment across the UK, 24 January 2025, Link
[7] HM Treasury, Chancellor unveils plan to turbocharge investment across the UK, 24 January 2025, Link
[8] HM Treasury, Chancellor unveils plan to turbocharge investment across the UK, 24 January 2025, Link
[9] HM Treasury, Chancellor unveils plan to turbocharge investment across the UK, 24 January 2025, Link
[10] HM Treasury, Chancellor unveils plan to turbocharge investment across the UK, 24 January 2025, Link
