The Department for Communities and Local Government has today published responses to proposals to remove barriers preventing local government pension scheme funds from investing in infrastructure.

Last week, the government decided to increase the cap placed on the amount that local authority pension funds can invest through limited partnerships from 15 per cent to 30 per cent after calls were made that the previous 15 per cent limit was too low and would put some local authority pension funds at risk of exceeding this limit, thereby preventing them from pursuing infrastructure opportunities as well as helping the economy to grow.

In a document entitled Local Government Pension Scheme: investment in partnerships, the Department said that 51 out of 87 respondents supported an increase in the limit with 15 not in support.

Concerning the second option of whether a new investment class in infrastructure should be created, 13 respondents supported this, whilst 32 were not in support. The report stated that there was a degree of nervousness about having a specific class to cover infrastructure as it might only suit some funds.

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