The chancellor’s pet PuFins have an important role – but they need more scrutiny

The National Wealth Fund and British Business Bank are set for major increases in public funding, reinforcing their central role in the government’s growth strategy. The article says these state-backed investors can support projects and businesses while seeking returns for taxpayers, but argues their expanding influence needs stronger scrutiny.

The NWF is due to receive £15.4bn over five years, on top of £27.8bn, while the BBB will get £5bn more alongside its existing £30.6bn. Supporters say their loans and investments can attract private capital and help meet fiscal rules; critics warn they may obscure borrowing or displace private finance. Questions include whether a £25m BBB investment in Kraken, valued at £6.45bn, and NWF lending to Scottish Power meet the test of providing finance the market would not.