Unlocking the UK's future

As we publish our latest Annual Report and Accounts, our Chief Financial Officer, Annie Ropar, reflects on the year just gone and the progress the National Wealth Fund is making to unlock the UK’s future and deliver on its strategic ambitions.

This past year has been a period of substantial growth for the National Wealth Fund, and we have made significant strides forward in the pursuit of long-term financial sustainability. Our latest Annual Report and Accounts details the latest progress, milestones and hurdles on that journey, showing how we are moving forward as a more mature organisation with a bigger, broader portfolio and a growing track record of impact.

Our achievements in this year are setting the foundations for us to deliver our Five-Year Strategic Plan to 2030–31, to unlock long-term economic growth and accelerate the transition to clean energy, all while bolstering resilience and security.

We have continued our upward trajectory by committing more than £4bn of core capital in the year (vs. £2.3bn in 24/25) in addition to our largest financial commitment to date providing up to £36.6bn to finance the construction of Sizewell C. We have also delivered more than 70 local advisory engagements and lent more than £1 billion to local government-led projects across the UK, from heat networks in the West Midlands to a Community Wind Farm in the Orkney Islands.

Altogether, our financial assets have grown by more than 3.5 times this financial year to £7.7bn. Our expanding portfolio of loan investments and guarantees has driven significant growth in our income and fees, with net interest income growing by more than £100m year on year to £144.6m (FY 2024–25: £43.6m), including a £79.9m contribution from Sizewell C, while guarantee and other fees have more than doubled to £14.3m (FY 2024–25: £7.1m). 

Naturally, with a larger mandate comes an increase in costs, and operating costs for the year rose to accommodate this ambition, with higher permanent headcount and activity-linked spend (such as IT, consultancy, audit and subscriptions) the primary drivers. Despite this, underlying income from the portfolio, excluding Sizewell C, more than covered operating costs, indicating improving operational leverage as the portfolio matures.

All of this is to say that we are making significant progress against our strategic ambitions, while continuing a journey to profitability.

However, despite this momentum, for the year ended 31 March 2026, the National Wealth Fund made a loss before tax of £67.5m, or £144.4m excluding contributions from Sizewell C (FY 2024–25: £152.2m loss). 

While the Sizewell C transaction has been transformative for our reported results, our underlying portfolio remains in a phase where early-stage losses are more likely to occur, as is typical for a financial institution that has been designed to have a high-impact, higher-risk mandate. Our strategy is designed for long-term value, and we expect further improvement as our broader portfolio matures and diversifies. 

In year, financial performance was affected by fair value movements on equity investments, particularly in the digital sector and those in very early stage and nascent sectors, the migration of certain assets to higher credit risk stages, and the restructuring of debt exposures on certain investments in the digital sector.

In spite of the challenges faced by the digital sector, we have had a significant impact through supporting the Government’s Project Gigabit programme, helping to ensure rural and hard to reach areas have gigabit capable broadband. This includes mobilising £8.7bn of private investment and helping our clients deliver fast, reliable broadband connectivity that will pass 20 million homes and businesses across the four nations of the UK, creating and sustaining around 18,400 jobs in the process.  

That’s millions of homes and businesses in rural communities that have been supported through our investments, and millions of people realising the benefits and opportunity digital connectivity brings.

By design, we invest to make an impact, with a significantly higher risk appetite than a commercial bank. Risk is inherent in our mandate, and our willingness to address market weaknesses and catalyse investment is what sets us apart. However, this continues to drive short-term volatility. 

In future years, our income will grow, giving us the capacity to absorb losses, enabling us to generate a portfolio-level financial return over time. Ultimately, our objective remains to generate a positive financial return for the taxpayer.

We are entering a significant phase of growth, expanding our portfolio and deepening our impact. Our Five-Year Strategic Plan sets a clear path to 2031, focusing on unlocking growth opportunities on the pathway to clean energy, accelerating place-based investment across the UK and strengthening sovereign and strategic capabilities. As always, we remain committed to transparency, operational excellence, and delivering value for the taxpayer.