Local government staff bodies have warned town halls they should not view the sector's giant pension fund as a ‘political toy', amid concerns senior figures are seeking to use the scheme as a cheap way to invest in local infrastructure, following government cuts.
Brian Strutton, national secretary at the GMB, issued a warning in the aftermath of the National Association of Pension funds' local authority conference on 25 May, at which chair of the Local Government Association, Sir Merrick Cockell, supported more detailed work on potential infrastructure investment by LGPS funds. Council managers are concerned that they cannot invest sufficient funds in local infrastructure plans following the 2010 Spending Review's grant cuts.
