Creation of £25bn sovereign wealth fund being actively considered by ministers to reboot regional companies in wake of coronavirus pandemic
The creation of a £25 billion sovereign wealth fund is being actively considered by ministers to reboot regional companies in the wake of the coronavirus pandemic.
The Government would buy shares in key private firms outside London – and could bring in private investors – to support those with the potential to gain international success after the crisis.
The shares would be sold to the companies’ owners at a later date, allowing the Treasury to recoup its investment.
Planning ahead: The Government would buy shares in key private firms outside London – and could bring in private investors
Sovereign wealth funds are popular around the world including in Norway, where a profit of £26,000 per citizen was generated last year, and Saudi Arabia, which uses its fund to invest oil revenues.
Lord O’Neill, a peer and former Goldman Sachs chief economist who devised the idea, told The Mail on Sunday: ‘You should never let a crisis go to waste. Why not use this mess to invest in British businesses while helping manage our debt?’
The Treasury declined to comment.