The new Chancellor, Rachel Reeves, has wasted no time in formally launching the National Wealth Fund (NWF), which was a key pledge in Labour’s manifesto. The fund will invest £7.3bn in ‘new industries of the future’. Essentially early-stage green technology businesses - investments in ‘green' steel; in hydrogen production from electrolysis of water; in carbon capture and storage.
The detail, which is yet to emerge, will be worked on in the coming weeks and months by the National Wealth Fund Taskforce, which includes Mark Carney, former governor of the Bank of England, as well as other high profile business leaders. The target is to attract private capital investment of £3 for every £1 of public funds invested, which if successful would generate an aggregate fund of around £29bn. So, can the Government expect a return on its investment?
