The Treasury has confirmed plans to provide £20.4 billion in additional capital to two state-backed investment institutions, with Chancellor John Healey expected to formally announce the package in the Budget on 28 October 2026.
The proposal, reported by the Financial Times and confirmed by the Treasury to Reuters on 24 October, would increase the capacity of the National Wealth Fund and the British Business Bank to invest in businesses, infrastructure and industries across the UK.
How the £20.4 billion would be divided
Of the additional capital, £15.4 billion is earmarked for the National Wealth Fund, which supports major infrastructure and strategic investment projects. A further £5 billion is planned for the British Business Bank, which supports access to finance for smaller and growing companies.
The funding is expected to be provided over approximately five years rather than spent in full immediately. According to the Financial Times, the National Wealth Fund allocation includes £2 billion for a renewables-focused Energy Wealth Fund.
Government projects 100,000 jobs by 2035
The Treasury says the package could help support around 100,000 jobs by 2035, including in artificial intelligence, defence and green energy. This is a government projection, not a verified number of jobs already created or a guaranteed outcome.
A Treasury spokesperson said the additional capital would help British businesses develop and attract investment into industries, infrastructure and places capable of generating jobs and long-term growth.
What the funding means for the public finances
The £20.4 billion is investment capital for state-backed institutions, rather than a £20.4 billion cash grant to households or an immediate increase in day-to-day public spending. The institutions may use capital to provide loans or make investments that create financial assets and may generate returns.
The Financial Times reports that the Treasury expects the investments to be neutral for its public sector net financial liabilities measure because the borrowing is matched by financial assets. That accounting treatment does not remove investment risk or guarantee that every project will deliver a return.
Next step: Wednesday's Budget
The capital allocations are expected to be formally set out in the Chancellor's Budget on Wednesday 28 October. Details of implementation, investment decisions and eventual economic results will be important in assessing whether the package delivers the Treasury's ambitions.
Sources: Reuters, 24 October 2026; Financial Times, 24 October 2026; National Wealth Fund official overview.