Two local government pension schemes are due to join forces after they got approval to pool their assets by the Financial Conduct Authority (FCA).

The Lancashire County Pension Fund and the London Pensions Fund Authority will now be known as the Local Pensions Partnership (LPP).

It follows calls by chancellor George Osborne for all 89 funds in the local government pension scheme (LGPS) to join together to form six combined wealth funds.

Chairman of the partnership, Michael O’Higgins, said: ‘We are delighted we can now move forward as an accredited entity and take the lead in creating the first pool within an asset and liability management partnership '.

‘FCA approval is the cornerstone of our drive for good governance in LGPS reform and an essential part of our formation.'