Local Government Pension Fund
Debate between Baroness Altmann and Baroness Taylor of Stevenage(3 weeks, 6 days ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness Altmann
To ask His Majesty’s Government what changes there will be in the new local government pension fund guidance in relation to (1) boycott or divestment activity, and (2) interaction with funds’ fiduciary duties.
The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)
My Lords, the Government’s position on these matters remains unchanged from the 2016 guidance, which was amended in 2017. Decisions on boycotts and divestment are matters of UK foreign policy and are for central government, not local authorities. It is not appropriate for local authorities to adopt investment policies that differ from UK government sanctions or foreign policy. Funds’ fiduciary duties are unchanged: they remain responsible for setting high-level investment strategies, the key driver of investment returns.
Baroness Altmann (Non-Afl)
I thank the Minister for her Answer. In that case, will the Government consider changing the potentially contradictory wording in the draft guidance sent to Local Government Pension Scheme administering authorities for a closed consultation on taking non-financial factors into account in their responsible investment, in case it could be exploited to drive divestment? Will she meet me and other people interested in this matter?
Baroness Taylor of Stevenage (Lab)
On the last point, I listened very carefully to the noble Baroness’s contributions on the pensions Bill. If she came to meet me, I would treat it as a teach-in on pensions, so I have no problems with having a meeting. The Government are finalising the investment strategy statement guidance in the light of comments received on the draft circulated for comment, as she said, in December 2025. We are carefully considering all feedback received before publishing the final guidance. We absolutely do not want this to be contradictory. We want to make sure that the guidance is crystal-clear because our position remains unchanged: it is not appropriate for local authorities to adopt investment policies that go beyond, or differ from, UK government sanctions or foreign policy positions. We want to make that clear and we will endeavour to do so in the guidance.
London Boroughs: Financial Support
Debate between Baroness Altmann and Baroness Taylor of Stevenage(7 months, 1 week ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness Taylor of Stevenage (Lab)
I hope my noble friend has been in the Chamber when I have spoken before about the £39 billion investment that our Government have made into social and affordable housing. We look forward to working with our partners in local authorities to deliver that housing. I hope that that, along with other adjustments that we are making, including changes to right to buy, will help to improve the situation for those who are currently sitting on housing waiting registers.
Baroness Altmann (Non-Afl)
My Lords, I think the general feeling in the House is that funding for local government is in urgent need of reform but any reform will take some time. I suggest to the Minister that an option that could be available in the shorter term is to use the fact that there are huge pension fund surpluses in local authority pension schemes as a reason to have an employer contribution holiday or significant reduction in the £10 billion put into these schemes every year, so that some of that money can be redistributed to the urgent needs of the local populations.
Baroness Taylor of Stevenage (Lab)
There is much to be done in looking at local authority pension funds—I agree with the noble Baroness on that. We are working through that process. Of course, there is a balance to be struck between how you might use that for capital spending, which would be an investment that there may be a return on, and using it for some of the pressures that we are experiencing on revenue spending, which is the real pressure for local authorities at the moment. It would not be a long-term solution for that, but the noble Baroness makes a very good point. We are exploring what more can be done around the pension funds and using that money for local spend.