National Wealth Fund (United Kingdom)
The National Wealth Fund is a public finance institution of the United Kingdom, created in October 2024 when the UK Infrastructure Bank was refocused and branded as the National Wealth Fund to mobilise private capital for clean energy and industrial transformation, and to support long-term regional growth. It is sponsored by HM Treasury and operates at arm’s length under a Statement of S
Overview
The National Wealth Fund is a public finance institution of the United Kingdom, created in October 2024 when the UK Infrastructure Bank was refocused and branded as the National Wealth Fund to mobilise private capital for clean energy and industrial transformation, and to support long-term regional growth. It is sponsored by HM Treasury and operates at arm’s length under a Statement of Strategic Priorities for the 2024 to 2029 Parliament. The fund has up to £27.8 billion of public capital announced for deployment through equity, loans, guarantees and local-authority lending, with the objective of "crowding in" larger volumes of private investment. Its activities complement other UK institutions, including the British Business Bank for small and medium-sized enterprises and Great British Energy for power-sector projects. Analysts describe the fund as a national investment vehicle rather than a classic sovereign wealth fund, and note that outcomes will depend on governance, project pipelines and wider planning and grid reforms.
Origins
The National Wealth Fund traces its origins to the UK Infrastructure Bank (UKIB), which was created in 2021 to support regional and local economic growth and to help tackle climate change. UKIB’s role was put on a statutory footing by the UK Infrastructure Bank Act 2023.
Creation and transition (October 2024)
On 14 October 2024 the government launched the National Wealth Fund and announced that the UK Infrastructure Bank would become the National Wealth Fund, expanding its remit beyond infrastructure to support wider industrial transformation and to mobilise private capital. A House of Commons Library briefing summarised the change and set out how the fund’s objectives relate to existing UK public investment bodies.
Statement of Strategic Priorities (March 2025)
On 19 March 2025 the Chancellor issued a Statement of Strategic Priorities to the National Wealth Fund, setting the fund’s direction for the 2024 to 2029 Parliament. The statement confirms the fund’s strategic objectives and sets out priority areas for investment and partnership working. The Chancellor also announced that the National Wealth Fund could also be spent on defence.
Early activities
In May 2025 the fund announced a £600 million commitment to support grid upgrades by ScottishPower, the UK subsidiary of Iberdrola, as part of a wider financing package arranged with commercial lenders. Press coverage reported it as the fund’s largest commitment to date and highlighted its role in accelerating transmission investment to integrate more renewable generation.
Sponsorship and independence
The National Wealth Fund is wholly owned by HM Treasury and operates at arm’s length. Official material states that the Treasury is the shareholder and sets the overall priorities through a Statement of Strategic Priorities, while the fund is operationally independent in delivery.
Board and committees
The fund is governed by a board that provides leadership and sets strategic direction. Terms of reference describe the board’s role and confirm the existence of three standing committees for audit and risk, remuneration, and nominations. Government announcements in late 2025 recorded the appointment of additional non-executive directors to strengthen investment, risk and regional expertise on the board, which is chaired by Chris Grigg.
Executive leadership
Leadership changed during 2025. On 15 July 2025 the Chancellor announced Oliver Holbourn as incoming chief executive. National Wealth Fund updates noted that Ian Brown served as interim chief executive until 1 November 2025, and the website lists the executive committee members by function.
Capitalisation and instruments
Government material announced that the National Wealth Fund has up to £27.8 billion of public capital for deployment, with the aim of mobilising larger volumes of private investment alongside it. The policy paper published on 14 October 2024 sets out the initial scale and confirms that capital can be committed through a range of products. The Statement of Strategic Priorities issued on 19 March 2025 reiterates that the fund’s role is to crowd in private finance while operating at arm’s length from ministers. According to the fund’s published information, investment can be structured to address project and sector needs. Instruments include equity co-investment, loans and other forms of debt, guarantees and credit enhancements, and targeted support to local authorities through lending programmes. The fund indicates that commercially oriented structures may be used where they help unlock delivery, subject to value-for-money and risk management requirements.
Investment priorities and sectors
For the 2024 to 2029 parliament the Statement of Strategic Priorities asks the National Wealth Fund to focus on four sectors: clean energy, advanced manufacturing, digital and technologies, and transport. Government and fund material state that during this parliament at least £5.8 billion will be committed across five sub-sectors: carbon capture and storage, green hydrogen, ports, gigafactories and green steel. As of October 2025 the Statement of Strategic Priorities and fund strategy pages do not list defence as a priority sector. Sources also note continuity from the former UK Infrastructure Bank remit; areas such as water, waste and natural capital can remain relevant where they align with the shareholder’s priorities for this parliament.
Clean energy
This priority covers investment that supports deployment and enabling infrastructure aligned with growth and net-zero missions during this parliament. Published priorities include projects related to carbon capture and to hydrogen production and use, with the objective of crowding in private finance. The fund’s activity can complement revenue-support mechanisms for low-carbon power such as the government’s Contracts for Difference scheme and with system planning signals published by the National Energy System Operator.
Advanced manufacturing
This priority targets capital-intensive industries important for industrial transformation in this parliament. Official material highlights gigafactories and green steel as named sub-sectors for earmarked funding, and independent explainers situate these within a broader supply-chain resilience agenda linked to the UK’s Industrial strategy.
Wikipedia contributors · National Wealth Fund (United Kingdom) · revision 1368744255 · CC BY-SA 4.0 · Plain text extracted and formatting adapted; tags derived from linked topics.