London’s councils are considering establishing a pooled pension fund as part of efforts to cut administration costs and boost infrastructure investment, the FT reports.
The proposals would see the creation of a new, single pension fund with up to £30bn of assets.
According to the FT, supporters of the plan suggest a combined fund could direct £2.25bn into local infrastructure projects.
Local Government Association chairman Sir Merrick Cockell says: “Each scheme has separate advisers, administrators, fund managers with their performance fees – if councils work together that cost can be steeply cut.”
The plan is also said to have the backing of Communities Secretary Eric Pickles and London mayor Boris Johnson.