Government responds to SAB letter on investment in conflict zones
Author: LAPF Investments | Published: May 15, 2026
The government has set out its position on investment in conflict zones, particularly on making investment decisions based on boycott, divestment and sanctions reasons.
The statement from local government minister Alison McGovern came in response to a letter sent to the minister by the Scheme Advisory Board in October, sent in response to the Palestine Solidarity Campaign letter and position paper received by many funds back in August.
In its response to the Scheme Advisory Board, McGovern’s letter said: “The government’s position is clear: decisions on boycotts, divestment and sanctions are matters of UK foreign policy and are for central government, not local authorities.
“It is therefore not appropriate for local authorities to adopt investment policies that go beyond or differ from UK government sanctions or foreign policy.”
The letter went on to say that this does not prevent authorities from setting or changing investment strategy reasons, particularly “where required to meet their fiduciary duties to scheme members”. It added: “Authorities must continue to act in line with the law and relevant guidance.”
The Scheme Advisory Board has said it welcomes that a response has been provided and will continue to assess any appropriate further steps to take in supporting funds in these matters.
