Councils will be able to invest twice as much of their pension assets in infrastructure schemes such as house-building, energy projects and high-speed rail, local government minister Brandon Lewis (Con) has announced.
Mr Lewis said the government will change the law so that councils can invest up to 30% of their holdings in the projects. It is double the current limit of 15%.
“Unlocking town hall pension pots so they can invest more in vital infrastructure projects will help this country complete on a global scale and get Britain building”, Mr Lewis said.
He said changes to the 2009 Local Government Pension Scheme (Management and Investment of Funds) Regulations would allow the extra investments to take place. The combined value of investment assets held under the LGPS is £150bn.