Gareth Thomas – 2016 Parliamentary Question to the Department for Communities and Local Government

The below Parliamentary question was asked by Gareth Thomas on 2016-10-10.

To ask the Secretary of State for Communities and Local Government, what recent representations he has received on reform of the Local Government Pensions Scheme; and if he will make a statement.

Mr Marcus Jones

We have received a large number of recent representations about the power of intervention in the investment regulations currently before the House. Under the new regulations, administering authorities are significantly more responsible and accountable for their investment decisions. They will no longer be constrained by central prescription on how their assets are invested, provided they act reasonably within the framework provided by the regulations and guidance.

The power of intervention has been included in the regulations as a backstop in order to protect around £200 billion of funds in the local government pension scheme, in the rare circumstances where it might be necessary to do so. As set out in the Government response to consultation the regulations include a number of safeguards, including full consultation with the relevant authority, to ensure that the power is used appropriately and proportionately. We have made clear that the intervention power will be used sparingly and only where fully justified.