Question to the HM Treasury:

To ask His Majesty's Government whether spending by the National Wealth Fund will be subject to their fiscal rules; and, if so, which of the fiscal rules will apply.

The UK’s fiscal framework (as set out at the October 2024 Budget) applies to the whole public sector, including the National Wealth Fund (NWF). The NWF is operationally independent, but wholly owned by the Treasury, and therefore part of the public sector and subject to the fiscal framework.

Specifically, the fiscal framework contains two fiscal rules:

i) the stability rule – to move the current budget into balance so that day to-day costs are met by revenues, meaning that the government will only borrow for investment. The NWF’s current expenditure, for example the salaries of NWF staff, and current income, for example the income it receives for loans, are included in this metric.

ii) the investment rule – to reduce debt, defined as public sector net financial liabilities or net financial debt, as a share of the economy. Net financial debt is a broad measure that includes the value of financial assets owned by the government and nets these assets off the liabilities of government captured in net financial debt. NWF’s financial assets, for example it’s loans and equity investments, are included as financial assets under this metric.