All parties must commit to setting up a sovereign wealth fund in their election manifestos, a think tank has said.
Lakshmi Narayanan, chairman of the Sovereign Wealth Fund Institute (SWFI), believes Britain could “easily” have a £395 billion fund within three to five years. His comments came as Prime Minister Rishi Sunak last week called a general election for July 4.
The funds – which are state investment pools designed to grow a country’s wealth – are usually created from surplus revenues.
Narayanan said it is “high time” for Britain to announce a sovereign wealth fund and that a £395 billion pool could be a boost to London’s stock market.
He added: “Every political party must announce their intention to establish a sovereign wealth fund and make it part of their initial implementation plan.
Idea: All parties should promise in their election manifestos to set up a sovereign wealth fund
‘This could unlock between 8 and 10 per cent of the wealth in the capital markets, creating £40 billion of liquidity.’
Last year’s Mail on Sunday reported that Treasury officials were exploring the idea of setting up a sovereign wealth fund.