The UK government is being urged to ensure that trade union representatives are included on the board of its new £7.3 billion National Wealth Fund (NWF), as a counterbalance to the influence of major financial institutions.
The call, led by the campaign group Positive Money, is part of a broader effort to shape the fund’s governance and investment strategy, focusing on achieving green objectives and promoting “shared prosperity” for all UK citizens.
The National Wealth Fund, introduced by Chancellor Rachel Reeves following the July election, is designed to attract significant private-sector investment — up to three times the amount of public funds allocated — for large-scale infrastructure projects across the UK.
These projects range from ports and gigafactories to hydrogen and steel ventures. By leveraging £7.3 billion in public money, the government hopes to encourage private investors to commit substantial capital to these initiatives.
However, Positive Money has raised concerns about the potential dominance of financial sector interests in the NWF’s decision-making processes. Labour has so far leaned on a task force that includes executives from major firms such as Aviva, NatWest, Barclays, and even former Bank of England governor Mark Carney.
This reliance on financial heavyweights has led to fears that the NWF might prioritize investor returns over broader social and environmental goals.
Campaign Urges Board to Reflect All Interests
In response, Positive Money advocates for a governance structure that prioritizes workers and communities, not just investors.
They propose an independent board and investment committee with strong civil society representation, including think tanks like the Institute for Public Policy Research (IPPR) and climate-focused groups like E3G.
Trade unions, they argue, should also have a seat at the table to help ensure the NWF supports a just green transition and delivers shared prosperity.
“These recommendations arise from what Positive Money sees as over-representation of the financial industry in the national wealth fund task force,” the group stated.
The creation of the NWF comes in the wake of Labour’s controversial decision to halve its £28 billion green investment pledge, a move that sparked criticism from environmental organizations, unions, and other stakeholders.
Positive Money suggests that the NWF should aim to operate similarly to Germany’s KfW development bank, which manages assets worth £580 billion. To achieve a comparable impact on a per-capita basis, the NWF would need to grow to over £460 billion.
One way to scale up the NWF, according to Positive Money, is by granting it the authority to issue bonds in financial markets. They also propose exempting the NWF’s borrowing from government fiscal rules that limit public sector debt, thereby giving it greater flexibility to invest on a larger scale.
In addition to centralizing control, Positive Money recommends decentralizing investment decisions to a network of 12 regional banks, distributed across Scotland, Wales, Northern Ireland, and the nine regions of England.
These regional banks would work closely with local authorities and industries to determine the most effective allocation of funds, ensuring that investments address the specific needs of each area.
The group sees this approach as crucial to ensuring that funds are directed to where they are most needed, across the entire country.
Simon Youel, head of policy and advocacy at Positive Money and author of the report, highlighted the unique opportunity Labour has with the NWF.
“The NWF isn’t just an opportunity to deliver social and environmental value to the public after years of underinvestment. It’s a chance for the public to finally start seeing some returns on their investment, instead of the ‘privatized rewards, publicized risk’ model that has become all too familiar in recent decades.”
Simon Youel
A Treasury spokesperson added that the NWF will be central to the government’s industrial strategy, clean energy initiatives, and broader efforts to generate economic growth and job creation across the UK. Further details about the fund’s operations will be disclosed in due course.
