Local government finance experts have warned town hall pension pots are not banks which the Treasury can draw upon to fund vital infrastructure projects.
The advice follows the outcome of a consultation, which has doubled the amount of assets the 89 Local Government Pension Scheme (LGPS) funds are able to invest in local infrastructure projects. As a result of the new regulations –which increase the proportion of assets allowed to be pumped into limited partnerships from 15% to 30% – around £45bn of total LGPS funds worth £150bn could be available for housebuilding, transport or regeneration projects.