Question to the Ministry of Housing, Communities and Local Government:

To ask His Majesty's Government whether the proposed eight consolidated Local Government Pension Scheme megafunds, announced in the Chancellor’s Mansion House speech, will be able to invest overseas; and what assessment they have made of the impact of the proposals on UK infrastructure.

On 14 November, we published a consultation on proposals to strengthen Local Government Pension Scheme (LGPS) pooling arrangements, including by mandating pooling of all LGPS assets and minimum standards for LGPS asset pools, in line with international best practice. The consultation does not include proposals to consolidate or merge LGPS funds. LGPS administering authorities would remain responsible for setting a high-level investment strategy, with the implementation of that strategy delegated to their asset pool.

The government believes that completing the consolidation of LGPS assets will enable delivery of the full benefits of scale and support UK growth, including through greater capacity and expertise to invest in alternative asset classes such as UK infrastructure. LGPS members’ pensions and benefits are not affected by the proposals as they are protected and guaranteed in statute and are not affected by the performance of investments.