A UK sovereign wealth fund partly bankrolled by the proceeds of fracking is being considered by ministers as part of plans to invest in businesses and drive economic growth.
Officials have drawn up plans for a Norway-style state-backed fund that would also accept investments from pension schemes and would focus on backing long-term projects.
It could be used for national infrastructure investment and to drive growth in the Government’s new “investment zones”, while also providing the Treasury with access to cheaper credit as interest rates rise.
The entire point of a sovereign wealth fund being to not spend it in the domestic economy for fear of Dutch Disease.
And why provide the Treasury with cheaper credit if we could, instead, just pay the tax money to the Treasury and spend it?