Tower Hamlets is preparing to increase local investment within its pension fund, with the Pension Board agreeing to develop a framework by March 2026. This move comes as the board seeks to address concerns about liability and control, particularly regarding the London CIV (London Collective Investment Vehicle).

The decision, made at the board's meeting on Monday 15 September 2025, follows the government's 'Fit for the Future' consultation, which encourages Local Government Pension Schemes (LGPS) to boost investment in UK-based projects and businesses.

During the meeting, the board discussed the scope of local investment , clarifying that the government's definition encompasses the entire United Kingdom. The board resolved to task officers with assessing and preparing for compliance with the new asset pooling and investment requirements.

John Gray, representing Active Admitted/Statutory Bodies Pension Fund Members, voiced concerns regarding the London CIV's role in asset allocation. He highlighted that Tower Hamlets would retain liability for investments, while asset allocation would fall under the London CIV's domain, advocating for better scrutiny of LCIV 1.

The full minutes of the meeting are available on the Tower Hamlets Council website.

  1. John Gray commented that with the proposed changes to the LGPS, Tower Hamlets would retain the liability for the investments, whilst asset allocation would be the London CIV's domain, and that there had to be better scrutiny of LCIV. ↩