HM Treasury has published a framework document for the National Wealth Fund that defines the respective roles of HM Treasury as shareholder, UK Government Investments as shareholder representative, and the fund itself. The document sets the fund’s governance, accountability and day to day working arrangements, confirms operational independence for routine activity and investment decisions within agreed delegations, and frames the National Wealth Fund as the UK government’s principal investor and policy bank for capital intensive infrastructure, supply chains and businesses. The framework ties the fund’s activity to two strategic objectives, tackling climate change and supporting regional and local economic growth, and to a triple bottom line approach under which investments should support growth and clean energy, deliver a positive financial return for the Exchequer, and crowd in private capital over time. It excludes most support for fossil fuel extraction and related assets, subject to limited exemptions such as carbon capture and decommissioning, and says water companies can only receive support if they have a costed, time limited plan to prevent discharges. Governance provisions give the Chancellor responsibility for appointing the chair, chief executive officer and non executive directors, require a UK Government Investments non executive to sit on the board and its audit and risk, remuneration and nominations committees, and subject the strategic plan, annual business plan and matters outside delegated limits to HM Treasury approval. The financial framework provides GBP 27.8 billion of overall financial capacity plus support for the Sizewell C loan, including GBP 7.7 billion of equity over time, HM Treasury loan facilities, management of the UK Guarantee Scheme and authority to issue up to GBP 10 billion of guarantees. The document is to be reviewed regularly and updated at least every three years, with the latest review due by April 2029.
HM Treasury2026-05-28
HM Treasury sets National Wealth Fund governance framework and defines shareholder roles and GBP 27.8 billion capacity
HM Treasury has published a framework for the National Wealth Fund, defining HM Treasury as shareholder, UK Government Investments as shareholder representative, and confirming the fund’s operational independence within agreed delegations. The fund is designated the UK government’s principal investor and policy bank for capital‑intensive infrastructure, supply chains and businesses, aligned with climate and regional growth objectives and a triple bottom line approach, and limiting support for fossil fuel extraction and certain water companies. The framework also sets governance arrangements, including Chancellor appointments and HM Treasury approvals, and provides GBP 27.8 billion of capacity, including GBP 7.7 billion of equity, loan facilities, management of the UK Guarantee Scheme and authority to issue up to GBP 10 billion of guarantees.