An influential coalition comprising trade unions, thinktanks, environmental organizations, and charities is calling on ministers to significantly enhance the financial capacity of the UK’s National Wealth Fund (NWF). The group argues that expanding the fund’s remit is essential to rebalancing the economy, lowering energy costs, revitalizing industrial regions, and creating high-quality jobs.
Launched in July 2024 by then-Chancellor Rachel Reeves, the fund was established as a manifesto commitment to leverage private sector capital for large-scale infrastructure projects. Its original model aimed to secure roughly £3 in private investment for every £1 of taxpayer money, specifically targeting ports, gigafactories, and steel or hydrogen initiatives.
The coalition is now pushing for a strategic overhaul that would establish the NWF as a “world-leading national development bank capable of delivering the investment Britain needs.” The proponents suggest this evolution would require granting the institution independence to raise its own finances and pursue long-term investments, a common practice for similar public banks globally.
Advocates maintain that this expansion aligns with the government’s fiscal rules, which permit borrowing for investment purposes. Prime Minister Andy Burnham has previously signaled a willingness to explore flexibility within existing fiscal frameworks to increase infrastructure spending. This debate comes ahead of Chancellor John Healey’s inaugural budget, set for October 28, and the upcoming Labour Party conference.
To illustrate the potential for growth, the coalition contrasted the NWF’s annual investment capacity of £5.5bn over the next five years with the scale of Germany’s state-backed KfW, which lent approximately £53.5bn (€62bn) in 2025 alone. The group believes a more robust UK fund could support home retrofitting, facilitate public part-ownership of critical infrastructure, drive green industrial initiatives, and bolster regional small businesses.
The Treasury has defended the fund’s track record, noting that it has already committed £3.9bn in its inaugural year to projects such as the Sizewell C plant, a second gigafactory in Sunderland, and flood defense schemes in Wales. Officials report that these efforts have unlocked an additional £5.25bn in private financing and secured or generated 11,500 jobs.
While acknowledging the “important role” the NWF has played in steering capital toward modern infrastructure and clean energy—citing a £500m partnership with the Manchester Good Growth Fund—critics emphasize that the current scale remains insufficient. A government spokesperson reaffirmed its commitment to the long-term mission of attracting private capital to drive economic growth into every corner of the country.
Crucially, the NWF functions differently from traditional sovereign wealth funds like those of Saudi Arabia or Norway, which manage surpluses from oil, trade, or state assets. Instead, the current UK model focuses on sharing financial risk with private investors to foster confidence in large-scale domestic development. The report also notes that the revitalisation of the UK’s industrial heartlands and the provision of more high-quality jobs could all be unlocked by scaling up the NWF, according to a statement from organisations including the TUC, Greenpeace, WWF and the New Economics Foundation, lower energy bills. The report also notes that the call to expand its scope comes just before the Labour party gathers for its first conference since Andy Burnham became prime minister and as John Healey draws up his first budget as chancellor, scheduled for 28 October. The report also notes that however, it calls on such public banks to do more, comparing the £5.5bn available for the NWF to invest each year for the next five years with the €62bn (£53.5bn) lent by Germany’s public investment bank KfW to households, businesses and municipalities in 2025 alone, almost 10 times higher. The report also notes that including, the statement lays out several ways a scaled-up NWF could benefit Britain. The report also notes that turbocharging the retrofitting of homes and buildings. The report also notes that giving the public a bigger stake in critical infrastructure through taking part-ownership stakes in key projects. The report also notes that launching a targeted investment programme to bring new green industries to communities hit hardest by deindustrialisation.
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