The Barking and Dagenham Pensions Committee has acknowledged the government's directive on investments in conflict zones, which clarifies that decisions regarding boycotts, divestment, and sanctions are exclusively matters of UK foreign policy for central government.
During a meeting on Tuesday, 30 June 2026, the committee received a response from the Ministry of Housing, Communities and Local Government (MHCLG) to the Scheme Advisory Board (SAB) concerning this issue. Minister of State for Local Government and Homelessness, Alison McGovern MP, stated that it is not appropriate for local authorities to adopt investment policies that extend beyond or diverge from established UK Government positions. Specifically, she clarified that 'decisions on boycotts, divestment and sanctions are matters of UK foreign policy and are for central government, not local authorities. It is therefore not appropriate for local authorities to adopt investment policies that go beyond or differ from UK Government sanctions or foreign policy positions.'
The council is set to update its Responsible Investment policy in response to this guidance. Nick Vickers, Head of Pension Fund, Treasury and Capital, informed the committee that the responsible investment policy, agreed upon last year, did not incorporate provisions related to human rights violations. He added that any consideration to include such provisions within the investment strategy statement would necessitate seeking professional investment and legal advice.
The update to the Responsible Investment policy will be undertaken through the consultation on the investment strategy statement. The exact timeline for this update and its subsequent approval process remain unspecified.
The committee's discussions and the subsequent guidance are detailed in the Public reports pack for the meeting held on Tuesday, 30 June 2026, which can be accessed here. The agenda frontsheet for the same meeting is available here.
