LGPS responds to government local investment calls
Published: September 9, 2025
The Local Government Pension Scheme (LGPS) has responded to government calls for local investment by commissioning a white paper on place-based investing.
Published by advisory firm The Good Economy, the paper argues that the UK needs a stronger domestic economy built on inclusive, long-term growth.
Seven LGPS pools in England and Wales backed the research, alongside administering authorities including Greater Manchester and the London Pensions Fund Authority. It responds to government reforms aimed at improving local investment by pension funds and local government.
Key recommendations include establishing a “common impact reporting standard” to ensure consistency, comparability and transparency in impact reporting. This would create stakeholder accountability for the local economic, social and environmental impact of investments.
Sam Monger, head of place-based impact investing at The Good Economy, said: “Despite its global financial strength, the UK suffers from decades of underinvestment. Public funding alone cannot meet growth ambitions, so unlocking institutional capital is essential.
“The LGPS has a distinct role to play in mobilising local investing across the country –pools and Administering Authorities must work together to set and monitor targets, embedding impact alongside risk and return.
“This journey is only just beginning – LGPS local investing can set new norms for responsible private market investment, delivering robust member returns and long-term value for UK communities.”
Frances Deakin, head of responsible investment at LPPI, added: “The government has identified the LGPS as an engine for economic growth – delivered, in part, by funds setting local investment targets and considering local growth plans when developing their strategies.
“LPPI know firsthand that local investment can finance retirement benefits and deliver positive social outcomes, but achieving dual outcomes requires investment strategy to be specific about the balance between different objectives.
“This whitepaper is a great opportunity to collectively inspire and support the pension funds and pools that will be navigating local investments together, and we’re proud to share our experience as part of this.”
