Report Highlights: Local Government Pension Scheme’s Impact on UK Communities and Infrastructure Investment for Levelling Up

The Local Government Pension Scheme (LGPS) fund has released a report detailing its commitment to investing in UK communities as part of the Levelling Up agenda. With £7.7 billion in assets, the fund has allocated approximately 13% of its portfolio to UK investments, including real estate and infrastructure.

A significant portion of the fund’s investment in real estate and infrastructure, totaling £1.7 billion, is focused on the UK. More than 70% of these investments are outside of London, demonstrating a commitment to supporting communities beyond the capital. This includes commercial real estate assets that provide jobs for around 19,600 people and housing investments that have already delivered nearly 4,000 homes with an additional 5,170 in the pipeline.

In addition to real estate investments, the LGPS fund has a strong focus on clean energy and social infrastructure. With over 100 clean energy assets, including wind farms and energy storage facilities, the fund is actively contributing to the transition to a low carbon economy. Its social infrastructure investments cover schools, healthcare facilities, and public sector buildings, benefiting over 140,000 pupils and supporting essential services in the community.

The report, developed in collaboration with The Good Economy and Local Pensions Partnership Investments, also highlights infrastructure investments in various sectors such as transport, water, energy, and waste management. This diverse portfolio of investments aims to support sustainable development, enhance economic resilience, and create job opportunities across the UK.

LPFA chief executive Robert Branagh emphasized the importance of understanding the impact of these investments on local communities and the environment. He highlighted the fund’s commitment to supporting the government’s Levelling Up agenda and the transition to a low carbon economy in a fair and inclusive manner.

As Pension Funds play a crucial role in driving sustainable development and economic growth, the LGPS fund’s strategic investments in UK communities are expected to have a positive impact on job creation, infrastructure development, and overall community well-being. With a focus on making informed decisions for the future, the fund is poised to play a significant role in driving positive change across the UK.