This new announcement shows that Leeds is really open for business.
Leeds is one of the the country’s biggest financial hubs – second only to the capital, in fact – so it makes sense that the government has just announced that the new National Wealth Fund (NWF) will be headquartered in Leeds. It will join the Financial Conduct Authority and the expanding Bank of England base here.
It’s taking the place of the existing, Leeds-based UK Infrastructure Bank (UKIB), but it’s much more than a like-for-like replacement. In addition to a budget increase from £22 billion to £27.8 billion, it will also receive an expanded remit, to look beyond its current role in supporting infrastructure into helping boost the new government’s industrial strategy.
It will be able to do by using more economic risk capital than before, meaning it will operate with fewer constraints in trying to drive more investment. The additional £5.8 billion will largely be targeted towards the green economy, in areas like carbon capture, gigafactories and both green steel and hydrogen.
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While it’s a nationwide body, with money to spend in all corners, the detail of the government’s announcement does include language about a ‘greater regional focus’ and gives the National Wealth Fund a ‘strong regional mandate’. There are calls for collaboration with mayors, devolved governments and local leaders to stimulate investment that will help with their ambitions.
Our own mayor, Tracy Brabin, was quick to welcome the announcement, posting on LinkedIn that it was, “fantastic to hear the Chancellor announce West Yorkshire as the home of the UK’s new National Wealth Fund… by putting more decision-making power in the heart of the north, this move will benefit the whole country and help rebalance our national economy.”
Leeds City Council leader James Lewis was similarly effusive, pointing to what it would definitely deliver to the city. “These developments create exciting opportunities for local people,” he told us, “offering a wealth of new jobs and career paths.” This echoes the words used in HM Treasury’s launch document, which stressed that the Leeds team would be expanded.
While some commentators have claimed that the NWF is merely a rebadging of something that already exists, it’s clear that the increased budget and scope of operations are a further sign of confidence in Leeds as a financial hub of international standing.
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