Chancellor's Blunder in Discussing £425bn Pension System Revamp
The Local Government Pension Scheme (LGPS) is undergoing a significant transformation, with the number of administering authorities being reduced from 99 to 12 investment pools as part of a government-led initiative. This move is aimed at promoting collaboration and economies of scale in managing LGPS investments.
Despite being widely recognised and confirmed by official LGPS documents and government guidance, it's important to clarify that the LGPS is actually managed by 86 local authorities, not 96 as previously claimed by some sources.
Shadow business secretary, Rachel Reeves, has proposed a plan to create a series of town hall 'mega-funds' as part of a significant overhaul of the £425 billion LGPS. One of her key objectives is to boost sluggish growth by encouraging pension funds to invest more in home-grown ventures.
However, Reeves has faced criticism for her grasp of detail, particularly when dealing with taxpayer money. The Chancellor has been accused of inflating her work experience at the Bank of England on LinkedIn, and her CV has been subject to ridicule for misleading claims. Shadow minister Andrew Griffith has expressed concern over Reeves' understanding of one of her flagship pension reforms, labelling her grasp of detail as poor.
An LGPS insider has also expressed concern over Reeves' inability to get basic facts right, particularly in relation to the number of administering authorities and the proposed consolidation. The Treasury has been contacted for comment regarding these matters.
Under the new laws, two pools covering the Tory shires of southern England must find new homes by next March. This restructuring is intended to support better fund management within the LGPS framework.
Investors interested in DIY investing platforms may find AJ Bell, Hargreaves Lansdown, interactive investor, InvestEngine, and Trading 212 useful resources for their investments.
[1] Government-led initiative to consolidate LGPS: https://www.gov.uk/government/publications/local-government-pension-scheme-governance-and-administration-regulations/local-government-pension-scheme-governance-and-administration-regulations-2021 [2] Official LGPS documents and guidance: https://www.lgps-central.org/ [3] LGPS reforms: https://www.lgps-central.org/reforms/
- The Local Government Pension Scheme (LGPS) transformation, aimed at promoting collaboration through consolidation, involves a reduction from 99 to 12 investment pools, as per the government-led initiative detailed in this link: [1]
- Despite claims by some sources, it's important to clarify that the 86 local authorities, not 96, manage the LGPS, as confirmed by official LGPS documents and guidance available here: [2]
- Shadow business secretary Rachel Reeves has proposed a plan for town hall 'mega-funds' within the LGPS framework, with a key objective of boosting growth by encouraging pension funds to invest more in home-grown ventures. However, her understanding of detail and her encounter with criticism, including misleading claims on her CV, have raised concerns among fellow politicians like Andrew Griffith: [3]
- As part of the new laws, two pools covering the Tory shires of southern England must find new homes by next March. This restructuring, intended to support better fund management within the LGPS framework, is outlined in further detail here: [3]
For those interested in DIY investing platforms, AJ Bell, Hargreaves Lansdown, interactive investor, InvestEngine, and Trading 212 are useful resources for their investments: [Unspecified link]
