Local council changes and what they mean for LGPS climate investments

Published: July 2, 2025

Written By:

Niamh Smith
Industry Specialist

What does the political fragmentation of local councils mean for LGPS funds trying to maintain consistent investment approaches across different administrations?

The political map of England was dramatically redrawn in May, following the fallout of the local elections. A wave of losses for the Conservatives and a surge in support for Reform UK has reshaped the composition of many local councils across England.

Several councils did not hold local elections, with some delayed by one year until May 2026. This delay is part of a broader local government reorganisation and devolution programme aimed at merging two-tier councils into larger unitary structures with elected mayors. Despite this, the impact on the reshaping of councils across the country was still significant.

While much of the focus has been on the electoral fallout, the consequences for the investment direction of LGPS, particularly surrounding climate and net zero strategies, are now coming into sharper view given Reform’s previous declaration of its overall view of sustainability. As councils reassess their priorities, LGPS funds may find themselves navigating a more complex political environment when it comes to sustainable investment.

Election results
Not all councils have published their new committees. However, those that have, reveal a political landscape seemingly dominated by the Reform party, which won the majority seats in 15 elections, allowing them to take control of their local council.

Meanwhile, the Liberal Democrats gained control of four local councils and maintained one seat. These wins came at a heavy loss for the Conservatives, which lost seats in 17 councils and only maintained seats in three councils.

Reform’s stance on sustainability
Reform’s overarching stance on net zero is that, while environmental action is necessary, current policies are too costly and damaging. The party’s manifesto argues that the drive towards net zero is increasing household bills, harming key industries like steel, and undermining national security.

Rather than aligning investment with net zero targets, Reform UK sets out an alternative environmental approach focused on tree planting, increased recycling, and reducing single-use plastics. The party proposes scrapping net zero policies and associated subsidies, claiming this would save the public sector over £30 billion annually for 25 years, including £10 billion a year in renewable energy subsidies.

“Renewables are not cheaper. Our bills have increased dramatically in line with the huge increase in renewables capacity over the last 15 years,” it says.1

Many newly-elected Reform UK councillors have taken positions consistent with the party’s wider stance. In Derbyshire, Councillor Alan Graves, whose party won 42 seats in the local election, scrapped the Climate Change, Biodiversity and Carbon Reduction Committee within a week of taking control of the council from the Conservatives.

The cross-party committee had been responsible for overseeing the council’s efforts to cut carbon emissions in Derbyshire. However, Graves said net zero is not a priority for Reform, arguing that the agenda is too costly for individuals and offers little value.

Martin Griffiths, whose group won control of North Northamptonshire Council with 39 seats compared to the Conservatives’ 13, has questioned the role of local authorities in addressing climate change.

While insisting that Reform UK is not made up of “climate change deniers,” he echoed concerns about the cost of climate action, describing it as a “global matter” that is “making everyone poorer.”2

These remarks came despite North Northamptonshire Council having declared a climate emergency in 2021 and committing to become carbon neutral by 2030, in line with the UK’s legal target to reach net zero by 2050 or sooner.

Several councils across Lincolnshire, including South Kesteven, East Lindsey and North East Lincolnshire, also declared a climate emergency in 2019. However, Sean Matthews, the new Reform council leader who secured 44 of 70 seats to take control from the Conservatives, has rejected the notion of a climate emergency.

“Even Lincolnshire County Council aiming for 2050 – I still think that is too soon,” he said, instead suggesting that the path to net zero would be better taken over 100 years.3

Reform’s position may impact LGPS funds, as pension committees in affected councils could face pressure to reconsider or limit net zero-aligned investments, potentially slowing progress on climate goals.

Other councillors commit to net zero
In contrast, some councillors remain committed to advancing net zero, actively supporting climate initiatives and embedding sustainability in local governance.

In the May election, Lucy Nethsingha of the Liberal Democrats was elected to Cambridgeshire County Council after securing 31 seats. Before the election, the council was under no overall control and governed by a coalition of Liberal Democrats, Labour and independents, with Nethsingha serving as the leader.

Nethsingha has long been a strong advocate for advancing net zero. In March, she was named one of three new co-presidents of UK100, a cross-party network of local government leaders dedicated to accelerating Net Zero and Clean Air goals.

All UK100 members have pledged to achieve their climate targets ahead of the government’s 2050 deadline. Even before joining the coalition, Cambridgeshire County Council had already made significant progress, cutting direct emissions from its own assets by 42% between 2018-19 and 2023-24.4

Nethsingha joined UK100 as a co-chair to join existing Conservative co-president Richard Clewer. Although Clewer lost his Wiltshire Council seat to Liberal Democrat Ian Thorn, whose party secured 43 seats compared to the Conservatives’ 37, Thorn has pledged to maintain focus on tackling the climate emergency. He stated that “the commitment of the last administration to addressing the climate emergency continues with this administration.”5

Other councillors are involved in similar initiatives. For example, Glen Sanderson, who retained his Conservative seat on Northumberland County Council where the party won 26 seats, serves as co-chair of Net Zero North East England. This is a regional partnership focused on creating a greener, fairer and more sustainable North East.6

Under Conservative majority control led by Martin Tett, Buckinghamshire Council made significant progress with its “Climate Change and Air Quality Strategy,” supported by a £5 million climate fund and a clear plan to reach net zero carbon emissions by 2050. This contributed to a 78% reduction in net carbon emissions for 2023/24 compared to 1990 levels.7

After the election, the council went under no overall control, with the Conservatives falling one seat short of a majority. Tett resigned as leader, and a Conservative minority administration was formed. Steven Broadbent, the former Deputy Leader and Cabinet Member for Transport, was confirmed as the new council leader. Broadbent’s previous focus on portfolios aligned with net zero suggests he intends to maintain the council’s climate commitments.

Reform’s electoral success across many councils reflects widespread resistance to net zero policies at the local level. Yet, alongside this, a significant number of new and returning councillors continue to prioritise climate action and sustainability. This divide may lead to varied approaches within LGPS funds, with some pension committees potentially scaling back net zero commitments while others push ahead, creating a more complex and uncertain investment environment.

 

1. Reform_UK_Our_Contract_with_You.pdf
2. Reform UK council leader in Northants criticised on net zero – BBC News
3. Lincolnshire Reform leader dismisses idea of climate emergency – Lincolnshire Live
4. Cambridgeshire County Council joins UK100 | Cambridgeshire County Council
5. Wiltshire Council challenged on net zero commitment | Wiltshire Times
6. Meet the board
7. Bucks Council has cut emissions by 78%, says leader | Bucks Free Press

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