Leicester City Council Divestment Motion
Proposed by the Deputy City Mayor Councillor Clarke, seconded by Councillor Singh Johal that:
Leicester City Council notes:
It does not have any direct investments in fossil fuels but Leicester City Council, through employer and employee contributions, contributes to around £154 million of investment in fossil fuels as part of the Leicestershire Local Government Pension Fund, according to UK Divest. The Leicester City element of this is estimated to be around 30% (£46.2m).
The United Nations Paris Agreement, reaffirmed at the 2021 Glasgow Climate Summit, commits our governments to keep the global temperature increase to under 2 degrees and aim for 1.5 degrees. Carbon budgets produced by the Intergovernmental Panel on Climate Change, United Nations and the International Energy Agency show that preventing two degrees of warming relies on not burning the vast majority of all proven fossil fuels.
The UN International Energy Agency (IEA) predicts that global oil demand will significantly fall by 2030, leading their Executive Director to refer to oil and gas companies as potential ‘junk investments.’[1] Action by governments to limit carbon emissions will ultimately leave fossil fuel reserves unburnable. It’s been estimated that this asset bubble, known as the ‘carbon bubble’, may be over €1 trillion in Europe alone.
Former Bank of England Governor Mark Carney warned that fossil fuel investments risk becoming “stranded assets” as investors exit the sector. “A question for every company, every financial institution, every asset manager, pension fund or insurer – what’s your plan?”[2]
Pension funds have a fiduciary duty to consider the material risks of continued investment in fossil fuels. Fiduciary duty is defined by the Law Commission as “ensuring that pensions can be paid, ensuring that this is undertaken at the best possible value”.
Pension funds have a legal duty to treat members “fairly as between them”. That means taking seriously the longer-term interests of younger members who may be affected more by the climate transition.
The city mayor and majority of Councillors committed, through the Labour manifesto, “to seek to end the Leicestershire pension fund’s investment in fossil fuel producing companies, redirecting this investment to support local solutions to climate change and fuel poverty.”
Therefore, this Council commits to:
1. Call on the Leicestershire Local Government Pension Fund to amend its recently adopted Net Zero Climate Strategy and develop a Responsible Investment Policy which explicitly rules out new investments in fossil fuel companies.
2. Call on the Fund to divest from fossil fuels through the development and adoption of responsible investment policies which:
a. Immediately freeze any new investment in the top 200 publicly traded fossil fuel companies.[3]
b. Divest from direct ownership and any commingled funds that include fossil fuel public equities and corporate bonds within [insert agreed number of years given market forecasts].
c. Set out an approach to quantify and address climate change risks affecting all other investments.
d. Actively seek to invest in companies that will reduce greenhouse gas emissions, minimise climate risk and where possible provide local environmental benefits.
3. Recognising that fossil fuel investments should be considered as part of the council’s “carbon footprint” and divesting our pension fund is one of the most impactful steps we can take to reduce our impact on our community and the world.
Green Open Space at Beaumont Park and the former Western Park Golf Course Motion
Proposed by Councillor Rae Bhatia and seconded by Councillor Kitterick that:
Leicester City Council notes the concerns of people in the west of Leicester at the proposed loss of valuable green open space at Beaumont Park and the former Western Park Golf Course in the city.
This council believes it is not too late to act to save these sites from development and instead focus more effort on bringing forward brownfield sites in Leicester.
This council, therefore, agrees to withdraw Beaumont Park and Western Park Golf Course from the list of proposed sites for development from the Leicester City Local Plan at the earliest possible opportunity.
Local Government Pay to Council: A fully funded, proper pay rise for Council and School Workers Motion
Proposed by the City Mayor and seconded by Deputy City Mayor Russell that
Leicester City Council notes:
Local government has endured central government funding cuts of more than 50% since 2010. Between 2010 and 2020, councils lost 60p out of every £1 they have received from central government. The City Council had to make real terms cuts of 50% in services other than social care. New research by UNISON suggests that councils across England, Wales and Scotland are facing a cumulative funding gap of £5bn by next year.
Recent research shows that
if the Government were to fully fund the unions’ 2023 pay
claim, around half of the money would be recouped thanks to
increased tax revenue, reduced expenditure on benefits and tax
credits, and increased consumer spending in the local
economy.
This council
believes:
Our workers are public
service super-heroes. They keep our communities clean and safe,
look after those in need and keep our towns and cities
running.
Without the professionalism
and dedication of our staff, the council services our residents
rely on would not be deliverable.
Local government workers
deserve a proper real-terms pay increase. The Government needs to
take responsibility and fully fund this increase having made it
impossible for councils to do so.
This council resolves
to:
Call on the Local Government Association to make urgent representations to central government to fund the NJC pay claim of RPI+2%.
Write to the Chancellor and
Secretary of State to call for a pay increase for local government
workers to be funded with new money from central
government
Meet with local NJC union
representatives to convey support for the pay claim and consider
practical ways in which the council can put pressure on the
government.
Minutes:
a) Leicester City Council Divestment Motion
Moved by Deputy City Mayor Councillor Clarke, seconded by Councillor Singh Johal and carried:
Leicester City Council notes:
It does not have any direct investments in fossil fuels but Leicester City
Council, through employer and employee contributions, contributes to around £154 million of investment in fossil fuels as part of the Leicestershire Local Government Pension Fund, according to UK Divest. The Leicester City element of this is estimated to be around 30% (£46.2m).
The United Nations Paris Agreement, reaffirmed at the 2021 Glasgow Climate Summit, commits our governments to keep the global temperature increase to under 2 degrees and aim for 1.5 degrees. Carbon budgets produced by the Intergovernmental Panel on Climate Change, United Nations and the International Energy Agency show that preventing two degrees of warming relies on not burning the vast majority of all proven fossil fuels.
The UN International Energy Agency (IEA) predicts that global oil demand will significantly fall by 2030, leading their Executive Director to refer to oil and gas companies as potential ‘junk investments.’ Action by governments to limit carbon emissions will ultimately leave fossil fuel reserves unburnable. It’s been estimated that this asset bubble, known as the ‘carbon bubble’, may be over €1 trillion in Europe alone.
Former Bank of England Governor Mark Carney warned that fossil fuel
investments risk becoming “stranded assets” as investors exit the sector. “A question for every company, every financial institution, every asset manager, pension fund or insurer – what’s your plan?”
Pension funds have a fiduciary duty to consider the material risks of continued investment in fossil fuels. Fiduciary duty is defined by the Law Commission as “ensuring that pensions can be paid, ensuring that this is undertaken at the best possible value”.
Pension funds have a legal duty to treat members “fairly as between them”. That means taking seriously the longer-term interests of younger members who may be affected more by the climate transition.
The city mayor and majority of Councillors committed, through the Labour manifesto, “to seek to end the Leicestershire pension fund’s investment in fossil fuel producing companies, redirecting this investment to support local solutions to climate change and fuel poverty.”
Therefore, this Council commits to:
1. Call on the Leicestershire Local Government Pension Fund to amend its recently adopted Net Zero Climate Strategy and develop a Responsible Investment Policy which explicitly rules out new investments in fossil fuel companies.
2. Call on the Fund to divest from fossil fuels through the development and adoption of responsible investment policies which:
a. Immediately freeze any new investment in the top 200 publicly traded fossil fuel companies.
b. Divest from direct ownership and any commingled funds that include fossil fuel public equities and corporate bonds.
c. Set out an approach to quantify and address climate change risks affecting all other investments.
d. Actively seek to invest in companies that will reduce greenhouse gas emissions, minimise climate risk and where possible provide local environmental benefits.
3. Recognising that fossil fuel investments should be considered as part of the council’s “carbon footprint” and divesting our pension fund is one of the most impactful steps we can take to reduce our impact on our community and the world.
b) Green Open Space at Beaumont Park and the former Western Park Golf Course Motion
Proposed by Councillor Rae Bhatia and seconded by Councillor Kitterick that:
Leicester City Council notes the concerns of people in the west of Leicester at the proposed loss of valuable green open space at Beaumont Park and the former Western Park Golf Course in the city.
This council believes it is not too late to act to save these sites from
development and instead focus more effort on bringing forward brownfield sites in Leicester.
This council, therefore, agrees to withdraw Beaumont Park and Western Park Golf Course from the list of proposed sites for development from the Leicester City Local Plan at the earliest possible opportunity.
AMENDMENT
Moved by Councillor Pantling and seconded by Deputy City Mayor Councillor Clarke:-
Leicester City Council notes the concerns of people in the West of Leicester at the proposed loss of valuable green space at Beaumont Park and the former Western Park Golf Course in the city.
This council notes that the Local Plan has been subject to extensive scrutiny through four public consultation exercises which has provided opportunities at each stage to raise objections.
This council agrees that the objections and petitions relating to the Beaumont Park and Western Park Golf Course sites should rightly and properly be considered in the prescribed way as part of an Examination in Public conducted by an independent Government Inspector, noting that ultimately the final adoption of the Local Plan would be a matter for this Council to determine.
To withdraw these sites at this stage would torpedo the plan which would then need to be withdrawn, re-written and new agreements sought with the districts to take even more of our housing and employment land needs. The council would then need further consultation on the plan proposals. All told this could take years during which time we would be without clear adopted planning policies to guide development in the city.
Following the debate, the Lord Mayor put the amendment to a vote.
The Lord Mayor declared the amendment carried.
Following further debate, the Lord Mayor put the substantive, amended motion to a vote.
Leicester City Council notes the concerns of people in the West of Leicester at the proposed loss of valuable green space at Beaumont Park and the former Western Park Golf Course in the city.
This council notes that the Local Plan has been subject to extensive scrutiny through four public consultation exercises which has provided opportunities at each stage to raise objections.
This council agrees that the objections and petitions relating to the Beaumont Park and Western Park Golf Course sites should rightly and properly be considered in the prescribed way as part of an Examination in Public conducted by an independent Government Inspector, noting that ultimately the final adoption of the Local Plan would be a matter for this Council to determine.
To withdraw these sites at this stage would torpedo the plan which would then need to be withdrawn, re-written and new agreements sought with the districts to take even more of our housing and employment land needs. The council would then need further consultation on the plan proposals. All told this could take years during which time we would be without clear adopted planning policies to guide development in the city.
The Lord Mayor declared the substantive, amended motion carried.
c) Local Government Pay to Council: A fully funded, proper pay rise for Council and School Workers Motion
Moved by the City Mayor, seconded by Deputy City Mayor Russell and carried:
Leicester City Council notes: Local government has endured central government funding cuts of more than 50% since 2010. Between 2010 and 2020, councils lost 60p out of every £1 they have received from central government. The City Council had to make real terms cuts of 50% in services other than social care. New research by UNISON suggests that councils across England, Wales and Scotland are facing a cumulative funding gap of £5bn by next year.
Recent research shows that if the Government were to fully fund the unions’ 2023 pay claim, around half of the money would be recouped thanks to increased tax revenue, reduced expenditure on benefits and tax credits, and increased consumer spending in the local economy.
This council believes:
Our workers are public service super-heroes. They keep our communities clean and safe, look after those in need and keep our towns and cities running.
Without the professionalism and dedication of our staff, the council services our residents rely on would not be deliverable.
Local government workers deserve a proper real terms pay increase. The Government needs to take responsibility and fully fund this increase having made it impossible for councils to do so.
This council resolves to:
Call on the Local Government Association to make urgent representations to central government to fund the NJC pay claim of RPI+2%.
Write to the Chancellor and Secretary of State to call for a pay increase for local government workers to be funded with new money from central
Government.
Meet with local NJC union representatives to convey support for the pay claim and consider practical ways in which the council can put pressure on the government.