National Wealth Fund recapitalised for local investment – might that include water?

(by Verity Mitchell)

The chancellor announced in the Budget that an additional £15.4bn of capital has been pledged by the Government to the National Wealth Fund (NWF), with a focus on strengthening Britain’s security, resilience and industrial growth. This includes a new commitment for the NWF and British Business Bank to deploy up to £5bn over the next four years into defence, critical minerals and AI, together with other sectors that support national security, sovereign capability and resilience.

With the leaders of other public financial institutions, the Fund’s CEO has offered support to regional and local leaders to get behind locally-led ambitions. The Fund will support and partner with mayors to deliver Good Growth Funds, which bring together public finance, local leadership and private investment to back opportunities that reflect the strengths and priorities of places across the UK.

Comment:

Water remains an eligible sector for investment. Might the Government’s upcoming new water strategy provide a role for the NWF to invest in new water projects if these are delivered locally? Could the NWF be a potential new investor in Thames Water in the future, given the removal of the current 'golden share' limits of 1-3% announced by government in September?