The Government launched the NWF in October last year, with £27.8bn to crowd in private investment and drive growth across the UK. Setting the NWF’s direction of travel, the Chancellor’s statement of strategic priorities sets its priority sectors, confirms the expansion of its remit, and announces an increase in economic risk capital. Designed to increase the ambition and scope of the NWF, the new strategic steer emphasises:

  • Priority sectors for the NWF as clean energy, digital and technologies, advanced manufacturing, and transport.
  • The expected commitment of £5.8bn within carbon capture, green hydrogen, gigafactories, ports and green steel over the course of this Parliament.
  • An expanded mandate, including scope to invest in dual-use technologies and to support supply chain resilience to better support defence and security, alongside life sciences and the creative industries, aligning with the forthcoming Industrial Strategy.
  • An increase in the NWF’s economic capital limit from £4.5bn to £7bn, supporting the additional capitalisation and ensuring we have sufficient risk capacity to deliver our objectives.
  • A target to mobilise private investment at a ratio of 3:1 at a portfolio level, with an emphasis on crowding into sectors over time and with investments targeting market weaknesses, not just market failure.
  • Increased engagement with local leaders, providing the expertise to support local priorities and investment needs.

NWF Chief Executive, John Flint, said:

This strategic steer sets our central role in delivering the Government’s growth and clean energy missions. It stakes out the territory in which we can deliver against policy ambitions, generating growth and good jobs, and driving the development and deployment of low-carbon technologies.

Mobilising private capital by taking risk that the private markets can’t or won’t is hardwired into our approach. We welcome the enhanced risk budget to enable us to increase our impact, in partnership with the private sector, boosting growth across the UK.

Chancellor of the Exchequer, Rt Hon Rachel Reeves MP, said:

My number one mission is kickstarting economic growth through our Plan for Change to make Great Britain a stronger, more resilient country and put more money into the pockets of working people.”

I am determined to go further and faster to get our economy growing. By directing tens of billions of pounds into the UK’s industrial strengths, we’ll deliver the high-skilled, high-paid jobs of the future in every corner of the country.

Recognising NWF’s financial expertise and credibility, the strategic steer invites the organisation to work more closely across government departments, leveraging its unique market expertise and insights to develop innovative financial solutions that avoid reliance on grants in the long-term – thereby offering better value for the taxpayer.

In response to the Chancellor’s strategic steer, and the expected publication of the Industrial strategy in June, NWF will publish a long-term strategic plan to identify where we might be needed to support delivery of Government policy ambitions.

-ENDS-

Notes to Editors

  • The NWF is wholly owned and backed by HM Treasury, but operationally independent. The NWF is based in Leeds and has £27.8bn to deploy across the capital structure, including loans, equity investments, and guarantees.
  • The NWF also provides commercial and financial advisory services and market leading lending to local authorities across the UK.
  • The government will introduce legislation as soon as parliamentary time allows to broaden the NWF’s legislative mandate beyond infrastructure.

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