Reeves to overhaul tax system as part of new National Wealth Fund: 'Significant milestone for economy!'

Speaking to global business leaders, Reeves declared an end to British economic instability and promised a new era of investment and job creation.

The Chancellor emphasised the Government's commitment to fostering growth and partnering with businesses.

"When we said we would end instability, make growth our national mission and enter a true partnership with business, we meant it," Reeves stated.

Reeves unveiled plans for two new bodies aimed at delivering long-term investment in the UK, utilising both public and private finance.

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Reeves also pledged to establish a tax system that supports wealth creation and investment, signalling a shift in economic policy.

The National Wealth Fund, a transformation of the existing UK Infrastructure Bank, will be based in Leeds with £27.8billion to invest in clean energy and growth industries.

This move fulfils a manifesto promise and aims to attract significant private investment in key sectors.

John Flint, who will lead the NWF, said: "Building on the strong foundations we have laid as UKIB, we will hit the ground running, using sector insight and investment expertise that the market knows and trusts to unlock billions of pounds of private finance for projects across the UK."

The NWF's broader mandate extends beyond infrastructure investment, signalling a more comprehensive approach to economic growth.

Alongside the National Wealth Fund, Reeves announced the creation of a new British Growth Partnership within the British Business Bank (BBB).

One of the aims of the initiative to connect institutional investors, such as pension funds, with the BBB for long-term, commercial investments by the end of 2025.

Louis Taylor, BBB chief executive, commented: "By establishing the British Growth Partnership, the bank will encourage more UK pension fund investment into the UK's fastest growing, most innovative companies."

The partnership aligns with the government's goal of encouraging British pension funds to invest more domestically. Taylor added that reforms to the bank's financial framework would allow for flexible reinvestment of returns, promoting growth across the UK.

This move builds upon previous efforts to increase domestic investment and supports the new Cabinet's economic strategy.

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Business leaders have welcomed the Chancellor's announcements with enthusiasm. Dame Julia Hoggett, chief executive of the London Stock Exchange, praised the British Growth Partnership, stating it will help UK firms access significant domestic capital.

Oliver Wyman's UK managing director, Lisa Quest, described the National Wealth Fund as "a significant milestone for the UK economy."

In her closing speech, Reeves emphasised the Government's commitment to creating a tax system that supports wealth creation and investment. She acknowledged the challenges ahead but stressed the importance of making the right choices to drive economic growth.

"The decisions which lie ahead of us will not always be easy. But by taking the right choices to grow our economy and drive investment we will create good jobs and new opportunities across every part of the country," Reeves stated.