Treasury plans £10bn council pension raid
Chancellor George Osborne is planning to raid local authority pension funds to help finance UK infrastructure projects, according to The Times.
In his autumn statement, Osborne (pictured) said the Government planned to spend an additional £30bn on infrastructure in the next 10 years, with £20bn expected to be raised from private sector pension funds. The remaining £10bn will come from extra Government spending.
However, The Times says Treasury sources now say at least £10bn of the the £20bn will come from local government pensions.
In November, the National Association of Pension Funds and the Pension Protection Fund signed a memorandum of understanding with the Government to help pension funds invest more in infrastructure.
ABI director general Otto Thoreson wants the Government to create a new class of infrastructure bonds to facilitate investment from insurers and pension funds.