Source · Select Committees · Treasury Committee
Recommendation 10
10
Rejected
Assess merits of National Wealth Fund borrowing directly from market to enhance independence.
Recommendation
The Treasury and NWF must assess the potential merits of allowing the NWF to borrow funds directly from the market to empower the NWF to enhance its independence from the Treasury when funding projects. (Recommendation, Paragraph 49) 21
Government Response Summary
The government rejects the recommendation to assess allowing the NWF to borrow from private markets, stating the NWF has sufficient existing capital and no current plans to enable direct borrowing; future capitalisation will be assessed after existing funds are exhausted.
Government Response
Rejected
HM Government
Rejected
HM Treasury increased the NWF’s capitalisation by £5.8 billion to £27.8 billion, strengthening its capacity to catalyse private investment into growth and clean energy projects. The NWF is focussed on deploying its existing capitalisation and has sufficient unused capital for investments over this Parliament. As such, the government has no current plans to enable the NWF to borrow directly from private markets. Once the NWF exhausts its existing financial capacity, HM Treasury will assess the most value-for-money approach for further capitalising the NWF, in line with Managing Public Money guidance.