Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Chancellor’s £7.3bn green gamble aims to boost UK economy

by July 10, 2024
July 10, 2024
Chancellor’s £7.3bn green gamble aims to boost UK economy

Rachel Reeves, the Chancellor, has unveiled a bold £7.3 billion investment plan to propel the UK to the forefront of green technology, committing to accelerating economic growth through high-risk, high-reward projects.

Reeves is determined to inject substantial funds into initiatives such as green steel, hydrogen production, and carbon capture and storage in the North Sea. These investments will focus on emerging technologies and early-stage projects, encouraging innovation and risk-taking.

A recently published report highlighted that many of these projects typically struggle to secure funding due to their unproven nature at commercial scale and the potential for cost overruns and construction delays.

Key initial targets include industrial decarbonisation, commercial green hydrogen production, and supporting new gigafactories. Investment decisions will be handled by the UK Infrastructure Bank, independent of direct ministerial control.

The newly established National Wealth Fund, central to Labour’s manifesto, seeks to leverage £3 of private investment for every £1 of taxpayer funding. This fund’s structure has been refined following recommendations from a report led by former Bank of England Governor Mark Carney and Barclays CEO CS Venkatakrishnan. The report advocates for the fund’s independence from government and its ability to attract private investment by assuming a larger share of financial risk. It also suggests competitive salaries to attract top-tier professionals.

Treasury sources indicate that the UK Infrastructure Bank will immediately begin identifying potential investment projects, with the £7.3 billion in funding becoming available following Labour’s first budget. A Treasury insider emphasised the government’s commitment to swift action, contrasting it with the delays of previous initiatives.

This strategic move is part of Labour’s broader plan to compete with the US, EU, and China, who are heavily investing in future technologies. However, the fund will avoid areas like solar panels and EV batteries, where China already has a stronghold.

Ed Miliband, Secretary for Energy Security and Net Zero, stated that this investment is integral to Labour’s mission to make Britain a leader in clean energy.

Despite the £7.3 billion public investment, the Climate Change Committee estimates that £50 billion annually is required for the UK to meet its climate targets from 2030-2050. Nonetheless, Reeves believes this funding will “turbo-charge” the UK Investment Bank’s efforts and attract immediate private sector investment.

Reeves highlighted the urgency of avoiding the delays seen in previous administrations, noting that substantial investments have been held back by bureaucratic hurdles. She expressed confidence that this initiative would restore investor confidence in the UK, distinguishing it from other countries.

In addition to this fund, the government will also launch GB Energy, an £8.7 billion public investment vehicle aimed at generating higher taxpayer returns through renewable electricity production. However, Reeves clarified that this is not a step towards state ownership of electricity generation.

Read more:
Chancellor’s £7.3bn green gamble aims to boost UK economy

0
FacebookTwitterGoogle +Pinterest
previous post
UK’s high debt poses challenges for new government, warns S&P
next post
Labour to attract global investors at early October summit

You may also like

Steven Bartlett Launches Flight Studio as he looks...

April 23, 2024

Top 5 Industries That Get Advantages From IoT...

August 29, 2024

Fintech leaders call for stricter AI regulation at...

February 6, 2024

Artificial intelligence (AI) in Blockchain Technology and Bitcoin

December 6, 2022

BGF supports UK and Ireland’s growth with £489M...

January 29, 2025

Ofgem raises energy price cap by 80% to...

August 26, 2022

UK Government Plans Training ‘Bootcamps’ to Address Worker...

May 21, 2024

Secrets of Success: Branwell Moffat,  Founder and Director...

November 29, 2023

More Housing’s launch is a new start in...

January 16, 2023

UK Planning Laws Hinder Investment, Warns Eli Lilly...

July 1, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • ‘Gender bonus bias’ revealed as men nearly 1.5 times more likely to receive bonuses than women

      August 28, 2025
    • Four in five online small businesses expect growth despite UK economic headwinds

      August 28, 2025
    • Tesla sales slump 42% in Europe as BYD overtakes market share

      August 28, 2025
    • “XRP Futures Hit $1B — WinnerMining Cloud Mining Shows You How to Earn $1,850 a Day”

      August 28, 2025
    • UK to fast-track next-gen RNA therapies with £30m Darlington biofoundry

      August 28, 2025
    • Government looks at applying National Insurance to rental income in Autumn Budget

      August 28, 2025

    Categories

    • Business (8,907)
    • Investing (2,246)
    • Politics (16,503)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved