Source · Select Committees · Treasury Committee
Recommendation 3
3
Deferred
Outline comprehensive performance metrics, risk appetite, evaluation methods, and taxpayer benefit in the new NWF Strategy.
Conclusion
The new NWF Strategy must outline: a. its performance metrics, including its risk appetite; b. how it will use equity and a range of financial instruments to ensure that the taxpayer shares in the upside of any risks it takes; c. how the NWF will be evaluated, how often and by whom; d. how the NWF would respond to any feedback that it is crowding out private investment. (Recommendation, Paragraph 26)
Government Response Summary
The government's response focuses on coordination among public financial institutions and attracting investment to the UK generally, through mechanisms like the Public Investment Roundtable, rather than outlining how the NWF's new strategy will address specific metrics, risk appetite, financial instruments, evaluation, or crowding out concerns.
Government Response
Deferred
HM Government
Deferred
The government strongly agrees that public financial institutions must work together to ensure businesses can access support seamlessly with no gaps or duplication. To drive this, the government established the Public Investment Roundtable (PIR) (formerly the Strategic Public Investment Forum), chaired by the HM Treasury Second Permanent Secretary. This brings together CEOs of all major public investment bodies regularly to ensure effective collaboration by strengthening handovers, closing support gaps and coordinating market offers. We have already begun to see a step-change in collaboration across these institutions. At the Regional Investment Summit, CEOs of UK public investment bodies issued a joint statement reaffirming their shared commitment to delivering the government’s regional growth and investment agenda. The government also published an overview of the UK public investment landscape to help businesses understand the landscape. Alongside this, public investment bodies are providing substantial new support for scale-ups. As set out in their Five-Year Strategic Plan, the British Business Bank (BBB) will invest at least £5 billion in growth-stage funds and scaling companies. This includes supporting at least ten new to market growth-stage funds over the next five-years. The government examined the merits of merging public financial institutions as part of its review of the landscape. This concluded the landscape is well- positioned to deliver government priorities, with opportunities to enhance impact through improved coordination. The UK’s public financial institutions engage regularly at all levels and work closely with the wider landscape through the PIR. The PIR is embedding a ‘no wrong door’ approach across relevant investment bodies by improving referral processes to ensure businesses and projects receive appropriate support without delay. It is also strengthening collaboration among public investment bodies to deliver joined-up assistance for projects requiring involvement from multiple institutions. To support this, the government is raising the Office for Investment’s (OfI) profile to maximise its effectiveness as a concierge service. HM Treasury is working closely with the OfI to refine its marketing strategy and reinforce the UK’s position as the world’s leading investment destination. The OfI is also partnering with the Department for Business and Trade’s GREAT campaign on paid investor campaigns that showcase the UK’s strengths in priority sectors. The first two campaigns—focused on digital and technologies and financial services—will launch in January to March 2026, targeting investors in priority markets.