Council Blocks Pension Fund Ethics Motion After Legal Warning

A motion calling for the Isle of Wight Council’s pension fund to avoid investments linked to alleged human rights abuses in Gaza was pulled from last week’s full council meeting following legal advice.

Cllr Chris Jarman had urged the authority to press fund managers to steer clear of any investments that could be seen as supporting the ongoing conflict, and to lobby the government for stronger ethical standards across all local government pension schemes.

But council chair Ian Dore removed the item from the agenda after the monitoring officer warned the proposal strayed beyond the council’s legal powers and risked putting members “at risk” by effectively asking them to make investment decisions based on foreign policy.

The advice, later released by County Hall, said the motion conflicted with the pension fund committee’s existing plan to carry out a wider review of its Environmental, Social and Governance (ESG) policy.

Cllr Jarman disputed this, arguing his proposal would “inform, rather than fetter” the review. He also highlighted other councils, including Southwark, that have recently moved towards divestment from companies linked to conflict zones.

The Isle of Wight Palestine Solidarity Campaign said it was “disappointed” the motion was not debated but vowed to continue campaigning, adding many Islanders remain concerned about how their pension funds are invested.