Speaking at the LGA Conference 2026, local government minister Alison McGovern MP said the Local Government Pension Scheme (LGPS) must work closely with England's strategic authorities to deliver ‘balanced growth’ across the country.
Growth has traditionally concentrated in London and the South East, McGovern said, and the creation of mayoral combined authorities has represented a chance to rebalance investment nationally.
While the LGPS already plays a significant role in UK investment, McGovern argued more could be done, with change required on both sides: strategic authorities need to identify the areas that need investment and work to secure funding, while the LGPS needs to be conscious that building new strategic authorities will take time.
Nick Dixon, head of pensions, Avon Pension Fund pointed to strong local opportunities for investment including affordable housing, renewable infrastructure such as solar farms, and SME funding, but cautioned that strategic authorities must compete with other opportunities for investors and translate ambitions into genuinely investable propositions
He said he understands his fund’s fiduciary duty to be largely about enabling councils to reduce their contributions to pension funds. He added that they also consider climate and local economic goals.
McGovern welcomed Dixon's focus on reducing council contributions, noting many local authorities are under financial strain, and expressed hope that investment now could support local economic development within a decade.
