Chancellor Rachel Reeves has announced a new £1 billion UK Social Investment Fund at the World Economic Forum in Davos, alongside confirmation of a £500 million investment in UK R&D and manufacturing from biopharmaceutical firm UCB.
The fund, backed by savings and investment group M&G, will target areas facing shortages in housing and transport, as well as communities in need of town-centre renewal and new education and health facilities.
It will also support investment in low-carbon and digital infrastructure linked to the UK’s net zero transition.
London-headquartered M&G said it has identified 225 places across the UK where communities could benefit from the funding, including locations in the North, Midlands, Wales and the South East.
The listed investment group also confirmed that its M&G Catalyst Growth Equity Fund has secured commitments of more than $850m, including $100m from the British Business Bank, to back growth-stage businesses in the UK and internationally.
Separately, UCB confirmed a £500m investment in research, development and manufacturing at a new hub in Windlesham, Surrey, supported by the government’s Life Sciences Innovative Manufacturing Fund.
The company said the investment will support medicines development for immunological diseases and strengthen UK capacity for end-to-end drug development.
“I came to Davos to champion Britain as one of the best places in the world to invest, grow a business, and deploy capital – and that plan is working,” said Reeves.
“M&G’s investment is exactly what our pensions and investment reforms are designed to unlock – billions of pounds to build the homes, infrastructure and invest in innovative businesses that will power Britain’s next decade of growth.
“I’m also delighted with UCB’s vote of confidence in Britain’s world‑class life sciences sector that will support cutting‑edge research, create highly‑skilled jobs, and help drive the growth that keeps Britain competitive on the global stage.”
Andrea Rossi, chief executive of M&G, added: “By unlocking capital from British savers and international partners, M&G is poised to build critical infrastructure, support the growth of British businesses, while laying the foundations for a more productive, sustainable economy and stronger communities across the country.”
Reeves’ Davos programme continues later today, including a Women in Work event and meetings with executives from AstraZeneca, LinkedIn and Revolut.
Around 850 CEOs of large companies and 64 heads of state have descended upon the Swiss town to navigate an increasingly tense geopolitical climate.