Rachel Reeves, the chancellor, will instruct the national wealth fund (NWF) and the Office for Investment 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 strengthening collaboration between Whitehall and devolved administrations.
Following a meeting with combined authority mayors in Rotherham, Reeves emphasised the importance of local insight for fostering sustainable economic development. “Those with local knowledge and skin in the game are best placed to know what their area needs,” she said, underlining her commitment to avoid a top-down approach.
Under the new framework, specially formed taskforces will craft bespoke growth strategies for each region, ensuring that investment matches local priorities. The mayors of Greater Manchester, West Yorkshire, the West Midlands and Glasgow City Region will be among the first to trial the partnerships with the NWF, which was founded last year to underpin major infrastructure projects.
According to Reeves, the initiative builds on the NWF’s impact to date, having helped create 8,600 jobs and unlock nearly £1.6 billion in private investment in sectors ranging from green technologies to manufacturing over the past six months. The Office for Investment, which unites senior officials from No 10, the Treasury and the Department for Business, will likewise collaborate with authorities in the Liverpool City Region and the North East, seeking fresh ways to attract private capital.
The deputy prime minister, Angela Rayner, who led the Rotherham discussions, said the government intends to expand devolution across England, putting more power in the hands of local leaders. Tracy Brabin, mayor of West Yorkshire, welcomed the NWF’s “transformational investments” in her region, adding, “We will deliver well-paid jobs and vibrant, well-connected places our communities need and deserve.”
The move follows a week of high-profile announcements from the Labour government on raising investment and nurturing growth, including eased restrictions for high-net-worth non-domiciled residents, demands on regulators to slash red tape, and signals of potential changes to the visa regime for skilled workers.
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Reeves plans closer ties between National Wealth Fund and regional mayors to drive local growth