National Wealth Fund announcements: Positive Money response

Simon Youel, Head of Policy and Advocacy at Positive Money, said:

“While it’s positive that the government is increasing funding for public financial institutions through a new National Wealth Fund, this alone will not be enough to overcome the UK’s historic public investment gap. 

“Learning from other successful examples such as Germany’s KfW, the National Wealth Fund should also be empowered to issue its own debt, which would allow it to mobilise much larger quantities of capital towards the real economy and a just transition, while meeting pension funds and other institutional investors’ demand for productive, safe assets. 

“Empowering the National Wealth Fund to live up to its true potential could help mobilise not just tens of billions, but hundreds of billions over the coming years to rebuild Britain’s crumbling infrastructure and revitalise economies across the whole country.

“Broadening the National Wealth Fund’s mandate beyond the UK Infrastructure Bank’s original focus is welcome. This mandate must prioritise public purpose not just private profit, and the government must ensure the Fund is held accountable to a wide range of stakeholders representing workers and communities, as well as industry.”

Notes:

• The government’s full National Wealth Fund policy paper can be found here: https://www.gov.uk/government/publications/national-wealth-fund-mobilising-private-investment 

• Positive Money found that if the £7.3bn funding for the National Wealth Fund takes the form of equity capital, this could allow it to mobilise more than £180bn: https://positivemoney.org/publications/a-national-wealth-fund-for-a-just-green-transition/ 

About Positive Money:

Positive Money is an international research and campaign organisation working to redesign our economic system for social justice and a liveable planet. Set up in the aftermath of the financial crisis, Positive Money is a not-for-profit company funded by charitable trusts and foundations, as well as small donations from its network of supporters. Find out more: www.positivemoney.org

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