Local Government Pension Fund

Baroness Altmann Excerpts

Monday 18th May 2026 Lords Chamber

Asked by

[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 In that case, will the Government consider changing the potentially contradictory wording in the draft guidance sent to Local Government Pension Scheme administering authorities for a closed consultation on taking non-financial factors into account in their responsible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.