Call for Evidence

In October 2024, the Treasury announced the creation of a new National Wealth Fund with the aim of mobilising investment and unlocking growth opportunities across the UK. On the 19 March, the Chancellor issued the Statement of Strategic Priorities to the National Wealth Fund, setting its strategic direction and priorities for this Parliament. In this inquiry, the Treasury Committee will look at how best the National Wealth Fund can achieve its aims and how likely it is to achieve those aims. The Terms of Reference are set out below: 

• How successful is the National Wealth Fund likely to be in (1) mobilising private investment and (2) stimulating economic growth?  

• The Chancellor has given the National Wealth Fund two strategic objectives: (i) supporting regional and local economic growth and (ii) tackling climate change.  How will these two objectives work together? 

• The Chancellor’s strategic direction sets  clean energy, advanced manufacturing, digital technologies, and transport as priority sectors for the National Wealth Fund. Are these the right priority sectors? Should others have been included? 

• How attractive is the National Wealth Fund likely to be as a partner for the private sector? Is the private sector sufficiently aware of the opportunities available within the National Wealth Fund? 

•  How can the National Wealth Fund ensure that it is crowding in rather than crowding out private sector investment? 

• What proportion of public infrastructure is likely to be funded by the National Wealth Fund? What projects should be funded by the National Wealth Fund vis a vis normal departmental spending? 

• How similar is the National Wealth Fund to its predecessor, the UK Infrastructure Bank? What lessons can the National Wealth Fund learn from the UK Infrastructure Bank? 

• What degree of independence will the National Wealth Fund have from HM Treasury?  

• What can the National Wealth Fund learn from international counterparts which have similar objectives or functions? How will the National Wealth Fund work with its counterparts in the devolved nations: the Scottish National Investment Bank, the Development Bank of Wales and the Northern Ireland Investment Fund? 

• By what criteria should the National Wealth Fund be judged? 

• What are the risks inherent in the National Wealth Fund? What are the risks that National Wealth Fund will lead to the Government funding either poor value for money projects and/or the Government having to spend more than anticipated due to defaults on the loans it is guaranteeing? 

• Do we need to accept that some of the projects funded by the National Wealth Fund will fail or be poor value for money? What kinds of failure does the Government need to tolerate in projects funded through the National Wealth Fund? 

• Does the accounting treatment of the National Wealth Fund in the Government’s new debt measure, Net Financial Sector Liabilities, lead to any perverse incentives in terms of giving preference to projects funded by the National Wealth Fund vis a vis Government spending?  

The deadline for this submission period is 5pm on Friday 25 April.