High Court rules DCLG guidance unlawful

Trustees Agenda posted on 23 June, 2017

The High Court has ruled guidance from the Department for Communities and Local Government (DCLG) for local government pension schemes is "unlawful" and not in the interests of pensions.

The 'Guidance on preparing and Maintaining an Investment Strategy Statement' issued in September 2016 contained a paragraph stating that "using pension policies to pursue boycotts, divestment and sanctions against foreign nations and UK defence industries are inappropriate, other than where formal legal sanctions, embargoes and restrictions have been put in place by the Government."

The case was brought against the Government by the Palestine Solidarity Campaign (PSC), who said the guidance prevented local government pension schemes from pursuing boycott, divestment and sanctions against the state of Israel for human rights abuse.