Labour Councils Cut Defence Investments Amid Pro-Palestinian Pressure

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Several Labour-led local authorities in the UK have decided to divest pension funds from British defence companies, despite government efforts to promote investment in the arms industry. At least nine councils have made the move, which appears to be influenced by pro-Palestinian activism, particularly in areas with significant Muslim populations.  

 

 

Chancellor Rachel Reeves has been advocating for greater investment in defence firms as part of a strategy to strengthen Britain’s industrial base. This push aligns with wider European efforts to bolster security in response to Donald Trump’s call for the continent to take greater responsibility for its own defence and military support for Ukraine. However, some Labour councils are going in the opposite direction, choosing to withdraw funding from companies involved in arms production.  

 

One councillor, speaking to *The Telegraph*, admitted that although the policy was crafted to appeal to pro-Palestinian voters, mentions of Gaza were deliberately omitted from official discussions. Last week, Dudley council in the West Midlands became the latest authority to approve divestment, arguing that withdrawing millions from arms manufacturers could “contribute towards peace.” The motion was supported by Labour and Liberal Democrat councillors.  

 

Labour’s stance on the Israel-Gaza conflict has already caused electoral damage. In the July 2024 general election, the party lost several historically strong seats to candidates running on pro-Palestinian platforms. The upcoming May 1 local elections have further increased pressure on Labour councils, particularly in areas with large Muslim populations.  

 

Two of the councils that have withdrawn investments are in the West Midlands, home to the second-largest Muslim population in the country after London. Four London councils—Camden, Islington, Tower Hamlets, and Waltham Forest—have also followed suit in recent months after sustained lobbying from pro-Palestinian groups. However, Islington council has since paused its divestment plans due to legal concerns over pension funds' obligations to generate financial returns for investors.  

 

Meanwhile, Avon Pension Fund, which oversees £6 billion in public sector pensions, is set to review £14 million worth of defence investments later this month after pressure from Bristol and North Somerset councils. The fund will assess whether to pull out from seven companies supplying equipment to the Israeli military.  

 

In November, Manchester City Council, under Labour leadership, voted to pressure its pension provider to cut ties with arms manufacturers. If implemented, this could significantly reduce defence investments from the UK’s largest local government pension investor. Reports suggest that more councils are planning similar votes in the coming months, potentially resulting in millions being divested from major British defence companies, including BAE Systems and Lockheed Martin’s UK operations.  

 

The move has drawn criticism from defence officials and political figures. Lord West, the former First Sea Lord, condemned the councils’ actions, accusing them of weakening national security. “They obviously aren’t that interested in the defence of our people, which will come back and bite them,” he warned. “Our defence firms are there to help protect us, as much as the people who actually join the military.”  

 

Labour previously voted against a Conservative-led bill that aimed to ban councils from engaging in boycotts and divestment campaigns. The legislation failed to pass before the 2024 general election. A Labour source insisted that the party opposes boycotts and sanctions, describing the council votes as a “genuine threat to the two-state solution.” Defence Secretary John Healey has also criticised the boycott attempts, calling them “fundamentally flawed,” even if motivated by good intentions.  

 

Shadow Local Government Secretary Kevin Hollinrake accused Labour councils of “inflaming community tensions” and harming the UK’s economy and defence sector. “If Labour were on the side of the British people, they would bring back our bill to stop this right now. Their silence speaks volumes,” he said.  

 

As Labour grapples with internal divisions and voter pressure, the debate over defence investments is set to remain a contentious issue in the coming months.

 

Based on a report by The Telegraph  2025-03-15

 

 

[JAG]

Manchester City Council (Labour run) currently has a funding "gap" of £20 million, projected to rise to £46 million over two years.

 

Bristol City Council (Greens and Lib Dems) has a current shortfall of £51 million.

 

Hardly economic power houses to make defence industries quake!

[mrwebb8825]

Why can't you lads get your sh!t together? Especially with a war on your horizon.

Zelensky just had another meeting with your "Leaders" and walked away looking like a man who had just been evicted from his own home.

With China and N.Korea poised to take advantage of the depletion of EU/NATO resources caused by Russia/Ukraine, you'd think they'd be looking at "CYA" when it comes to increasing the military. Wouldn't surprise me one bit to see Trump, Zelensky and Putin reach a peace agreement that includes carving up Europe since you can't defend yourselves.

[Chomper Higgot]

1 hour ago, mrwebb8825 said:

Why can't you lads get your sh!t together? Especially with a war on your horizon.

Zelensky just had another meeting with your "Leaders" and walked away looking like a man who had just been evicted from his own home.

With China and N.Korea poised to take advantage of the depletion of EU/NATO resources caused by Russia/Ukraine, you'd think they'd be looking at "CYA" when it comes to increasing the military. Wouldn't surprise me one bit to see Trump, Zelensky and Putin reach a peace agreement that includes carving up Europe since you can't defend yourselves.

If China and N.Korea are planning to take advantage of anything it’s the retreat of the draft dodger in the White House from supporting allies and backing the aggressor in a invasion of a sovereign nation.

 

 

[TedG]

15 minutes ago, Chomper Higgot said:

If China and N.Korea are planning to take advantage of anything it’s the retreat of the draft dodger in the White House from supporting allies and backing the aggressor in a invasion of a sovereign nation.

 

 

Why do you say dodger? Do you mean Joe Biden? 

[mrwebb8825]

9 minutes ago, Chomper Higgot said:

If China and N.Korea are planning to take advantage of anything it’s the retreat of the draft dodger in the White House from supporting allies and backing the aggressor in a invasion of a sovereign nation.

 

 

Don't get confused "Bucky".  Putin launched this attack on Biden's dime. He helped them by reducing Trump's sanctions, shutting down the US/Canada pipeline but approving Russia's setting up Europe and especially Germany to be "flanked" by Russia.

President Trump is trying to stop the slaughter. Benefits are a side win. “We The People” – affirm that the government of the United States exists to serve its citizens. Not yours. Be grateful we bailed you out twice. Grow a pair.