Source · Select Committees · Treasury Committee
12th Report - National Wealth Fund
Treasury Committee
HC 806
Published 28 October 2025
Recommendations
8
Accepted
Invest National Wealth Fund strategically, aligning funding with key government strategies.
Recommendation
The NWF must invest strategically, deploying its funding to align with government strategies, such as the Industrial Strategy and the Pensions Investment Review. (Recommendation, Paragraph 43)
Government Response Summary
The government agrees the NWF should align its investments with government strategies, confirming the NWF already delivers against a triple bottom line, and its forthcoming Strategic Plan will detail this focus on priority sectors.
HM Treasury
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9
Accepted
Maintain approach preventing political interference in the National Wealth Fund's operations.
Recommendation
Political interference would create a climate of uncertainty for investors and ultimately reduce the NWF’s capacity to attract private capital and promote growth. We were therefore reassured to hear from the former NWF Chief Executive that the NWF has not …
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Government Response Summary
The government strongly agrees the NWF must remain operationally independent to maintain market confidence and attract private capital, confirming this is ensured through its experienced fiduciary Board and a clear Framework Document.
HM Treasury
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Conclusions (3)
1
Conclusion
Accepted
The NWF making an overall positive rate of return is key to its success and sustainability. To achieve its objectives of boosting economic growth and clean energy, however, the NWF must have the risk appetite to invest in projects that the private sector regards as too risky. Risk appetite is …
Government Response Summary
The government agrees and will publish the NWF's new Strategic Plan in January 2026, which will detail its performance metrics, risk appetite, use of financial instruments, and evaluation processes as recommended.
2
Conclusion
Accepted
It is important to understand that some companies that the NWF invests in will fail, and the NWF will lose the value of some of its investments. This, in itself, cannot be a cause of criticism of the NWF, because it should have a higher risk appetite. Indeed, if none …
Government Response Summary
The government describes the NWF's mandate, substantial capitalisation, and statutory footing, which provides for an independent review and reporting on impact, aligning with the understanding that high-risk investments will sometimes fail.
4
Conclusion
Accepted
The NWF is not a conventional sovereign wealth fund that invests wealth generated from natural resources to benefit future generations. Therefore its name, the National Wealth Fund, could be misleading. The NWF is financed by the Government from taxation and borrowing, which means that its investments are likely to attract …
Government Response Summary
The government explains how the NWF already aligns its investments with government strategies and focuses on priority sectors, aiming for a triple bottom line. It also notes the NWF's Strategic Plan will detail its focus and mentions initiatives to leverage pension capital and other investment.