Reeves plans closer ties between National Wealth Fund and regional mayors to drive local growth

Rachel Reeves, Chancellor, will instruct the National Wealth Fund and Investment Office to coordinate their efforts with regional mayors for the first time.

The plan is part of a series of measures designed to boost local and national prosperity by enhancing cooperation between Whitehall and the devolved administrations.

After meeting with the participating mayors in Rotherham, Reeves stressed the importance of local vision to promote sustainable economic development. “Those with local knowledge and skin in the game are best placed to know what their area needs,” she said, stressing her commitment to avoiding a top-down approach.

Under the new framework, specially formed task forces will formulate growth strategies tailored to each region, ensuring that investment is aligned with local priorities. The mayors of Greater Manchester, West Yorkshire, the West Midlands and the Glasgow City Region will be among the first to trial partnerships with the National Life Trust, which was established last year to support major infrastructure projects.

According to Reeves, the initiative builds on the fund’s impact to date, which has helped create 8,600 jobs and unlocked nearly £1.6 billion of private investment in sectors ranging from green technologies to manufacturing over the past six months. The Investment Office, which includes senior officials from the Treasury and Department for Business, will also collaborate with authorities in the Liverpool City Region and the North East, looking for new ways to attract private capital.

Deputy Prime Minister Angela Rayner, who led the Rotherham discussions, said the government intends to expand powers across England, putting more power in the hands of local leaders. Tracey Brabin, Mayor of West Yorkshire, welcomed the Fund’s “transformative investments” in her region, adding: “We will deliver the well-paid jobs and vibrant, well-connected places that our communities need and deserve.”

The move comes after a week of high-profile announcements from the Labor government on increasing investment and boosting growth, including easing restrictions on high-net-worth non-residents, calls for regulators to cut red tape, and signs of potential changes to the visa regime for skilled workers.