Chancellor Rachel Reeves has confirmed the Labour government is pressing ahead with plans for a new national wealth fund in a bid to attract investors back to UK shores.

Investment into UK equities has flagged in recent years as global capital has flooded towards bumper US valuations and skyrocketing tech stocks. Before entering government, Labour pledged to review whether a sovereign wealth fund, popularised by vehicles in countries such as Norway, China, Canada, Singapore and Saudi Arabia could help spur growth.