Campaigners are challenging a government ban on council pension schemes withdrawing investment from companies associated with Israel.

It follows a ruling by the Department for Communities and Local Government last year restricting the right of local government pension schemes (LGPS) to disinvest against foreign nations and UK defence industries.

The Palestine Solidarity Campaign (PSC) is arguing in the high court today that the government ruling was unlawful.

It says council pension schemes should be free to withdraw investment from companies they regard as complicit in the unlawful occupation of Palestine.

PSC chair Hugh Lanning said: ‘Everyone has a right to peacefully protest Israel’s violation of Palestinian human rights.

‘It is reprehensible to forbid people from making decisions about where their own money goes, and forcing them to profit from human rights abuses.’