FAQs

What is the national wealth fund (NWF)?

The national wealth fund (NWF) is a proposed consolidated policy bank consisting of at least the NWF, UK Infrastructure Bank, and British Business Bank. It is a key component of Labour’s green industrial strategy.

How can the NWF leverage private funding?

Empowering the NWF to issue its own bonds is a crucial step in leveraging private sector investment. For every £1bn of government funding, the NWF has the potential to attract £14bn of private sector investment.

Why is it important for the NWF to issue bonds?

By issuing bonds, the NWF can access capital from private markets and increase its capacity to finance projects, create jobs, and drive sustainable British industries. This approach has been successful for institutions like Germany’s KfW and can be a game-changer for the UK.

Conclusion

Empowering the national wealth fund to issue green bonds on private markets is a strategic move that could unlock significant private sector investment and drive forward Labour’s green industrial strategy. By removing liabilities from the fiscal debt target and allowing the NWF to issue bonds, the government can catalyze economic growth, create jobs, and tackle climate change in a sustainable way. It is imperative that this policy change is implemented swiftly to maximize the NWF’s potential impact and bring about positive change for the UK economy and environment.