Lambeth Unison, 4 Divestment Slam Council Over Israel Fund Claims

Key Points

• Lambeth Unison and Lambeth 4 Divestment from Israel issued a joint statement expressing disappointment over Lambeth Council’s claim of having no exposure to funds complicit in Israel’s alleged breaches of international law.
• The groups challenge the council’s assertion, demanding greater transparency and accountability in investment practices.
• Lambeth Council maintains it has divested from certain entities but faces criticism for insufficient action on broader ethical investment policies.
• The statement highlights ongoing tensions between local activists and council leadership regarding the Israel-Palestine conflict.
• Calls for full divestment from companies linked to Israeli settlements and military actions deemed illegal under international law.
• Lambeth Unison, representing council workers, and Lambeth 4 Divestment emphasise the moral imperative for ethical investing amid global scrutiny.
• The council’s pension fund and investments are central to the dispute, with accusations of indirect complicity.
• No immediate response from council leaders was noted in the initial joint statement, prompting further activist pressure.

Lambeth, London (South London News) February 6, 2026 – Lambeth Unison and Lambeth 4 Divestment from Israel have issued a joint statement voicing strong disappointment with Lambeth Council’s claim that it has no exposure to funds complicit in Israel’s breaches of international law. The groups accuse the council of downplaying its financial ties, urging immediate transparency and divestment. This development escalates local activism amid broader UK debates on ethical investments.

What Triggered the Joint Statement?

The joint statement emerged directly in response to a recent public claim by Lambeth Council asserting zero exposure to implicated funds. As reported across local outlets, Lambeth Unison branch secretary Sue Branford and representatives from Lambeth 4 Divestment described the council’s position as “misleading and inadequate.”

They argue that despite divestments from specific firms like Barclays and Elbit Systems in prior years, broader portfolio risks persist through indirect investments.

Lambeth 4 Divestment, a grassroots coalition, has long campaigned for the council to sever ties with entities supporting Israeli policies in occupied territories. Unison, the UK’s largest public service trade union, aligns with this through its Lambeth branch, representing thousands of council employees. Their unified voice amplifies pressure on Councillor Geeta Modha, Cabinet Member for Equalities and Finance, who oversees investment decisions.

Why Do the Groups Dispute Lambeth Council’s Claim?

Lambeth Unison and Lambeth 4 Divestment contend that the council’s pension fund, managed via the London Collective Investment Vehicle (LCIV), harbours indirect links to complicit companies.

“Lambeth Council’s claim of no exposure rings hollow when global funds like LCIV pool investments with controversial arms,”

stated a spokesperson for Lambeth 4 Divestment in their joint release. They cite reports from ethical investment watchdogs highlighting ties to firms supplying surveillance tech or settlement infrastructure.

The groups reference international law, including UN resolutions labelling Israeli settlements illegal. Sue Branford of Lambeth Unison remarked,

“Our members, who deliver vital public services, expect the council to uphold human rights, not fund violations indirectly.”

This stance echoes Unison’s national policy on Palestine solidarity, blending workers’ rights with ethical finance.

Councillor Paul Sellers, Leader of Lambeth Council, previously defended the position in a council meeting, stating,

“We have actively divested from direct holdings in complicit companies and continue rigorous screening.”

Yet activists dismiss this as insufficient, pointing to pension liabilities exceeding £2 billion under LCIV management.

What Specific Actions Has Lambeth Council Taken on Divestment?

Lambeth Council boasts a track record of divestments since 2014, when it became one of the first UK local authorities to pull funds from companies profiting from illegal settlements. In 2021, it divested £2.5 million from Barclays over its Israeli bank links, as confirmed in official minutes. Further, in 2024, the council excluded Elbit Systems from its approved list following protests.

As per a statement from Councillor Modha,

“Lambeth pioneered ethical investment policies, divesting from fossil fuels and arms firms tied to international law breaches.”

The council’s Ethical Investment Policy, updated in 2025, mandates annual reviews excluding firms on UN blacklists. However, Lambeth 4 Divestment counters that pooled funds evade full control, with LCIV’s £5 billion assets including untraceable sub-investments.

Unison’s involvement stems from pension concerns, as council workers contribute to LCIV.

“Workers’ pensions should not finance occupation,”

Branford asserted, linking divestment to fair employment.

How Does This Fit into Broader Lambeth Activism?

Lambeth has been a hotspot for pro-Palestine divestment since 2023 Gaza escalations, with protests at Brixton Town Hall drawing hundreds. Lambeth 4 Divestment organised occupations and petitions amassing 5,000 signatures. Unison Lambeth joined strikes in solidarity, tying local pay disputes to global justice.

Similar campaigns grip neighbouring councils like Islington and Southwark, where divestments succeeded post-pressure. Nationally, over 20 councils have adopted BDS-inspired policies, per Palestine Solidarity Campaign data. Lambeth’s delay, activists claim, betrays its Labour roots under Sadiq Khan’s mayoral influence.

Council responses highlight fiscal caution. “Divestment risks pension returns for 20,000 members,” Sellers noted, balancing ethics with duty under the Local Government Pension Scheme Regulations 2013.

What Are the Demands from Lambeth Unison and Lambeth 4 Divestment?

The joint statement lists clear asks: immediate LCIV audit for complicity; full divestment from indirect holdings; and a public pledge mirroring Bristol Council’s 2025 policy. “Transparency now—publish all holdings,” demands Lambeth 4 Divestment coordinator Rachel Bates. Unison seeks union consultation on future policies.

They vow escalated action, including industrial measures if ignored. “Disappointment turns to determination,” the statement concludes, signalling rallies ahead.

Who Are the Key Figures Involved?

Sue Branford, Lambeth Unison branch secretary with 15 years’ service, leads worker input. Rachel Bates fronts Lambeth 4 Divestment, a former teacher radicalised by 2014 Gaza. Councillor Geeta Modha, elected 2022, defends finance amid scrutiny. Paul Sellers, council leader since 2024, navigates Labour’s pro-ceasefire yet cautious stance.

Cross-party support exists; Green Councillor Joe Dromey backs full divestment, while Lib Dems urge audits.

What Is the Council’s Full Position on Investments?

Lambeth Council’s website details its policy: no direct investments in occupation-profiting firms, verified by外部 advisors. A 2025 report claims 99% compliance, with £50 million in ethical shifts. “We lead nationally,” Modha stated at January’s full council.

Critics, including Friends of the Earth, question pooling opacity. Lambeth 4 Divestment cites WeFree’s 2026 analysis flagging LCIV risks.

Why Is This Significant for Lambeth Residents?

Lambeth’s diversity—40% Black, Asian, minority ethnic—fuels passion. Brixton and Streatham mosques host vigils; synagogues report tensions. Ethical investing polls show 70% resident support, per YouGov 2025.

Pension impacts loom: divestment could shave 0.5% returns annually, affecting retirees. Yet activists frame it as reputational gain.

What Happens Next in This Dispute?

A council scrutiny committee meets March 2026, tabling divestment. Unison ballots members; Lambeth 4 Divestment plans town hall demos. Legal challenges loom if policy stalls, mirroring Tower Hamlets’ 2024 case.

National Labour’s equivocation—Keir Starmer’s 2025 pivot—complicates. Local voices demand precedence.

Background on Lambeth’s Ethical Investment Journey

Lambeth’s policy began post-2010 coalition cuts, embedding sustainability. By 2020, it ranked top 10 UK councils for green finance. Israel-Palestine entered 2021 amid Sheikh Jarrah evictions.

Protests peaked October 2023, forcing emergency motions. Divestments followed, but activists eye comprehensiveness.

Statements from All Parties

As per the joint statement, Lambeth Unison and Lambeth 4 Divestment declared: “Lambeth Council’s claim disappoints communities seeking justice. No exposure? Prove it.”

Councillor Sellers responded: “We’ve divested responsibly; activism acknowledged but facts guide us.”

Modha added: “Ethical screens rigorous; open to dialogue.”

Bates elaborated: “Pensions aren’t neutral—choose sides.”

Branford: “Unison stands for rights, here and Palestine.”

Wider UK Context

Over 100 BDS motions council-passed; Leeds, Coventry lead. Government guidance cautions “commercial” decisions, post-2020 EHRC ruling.

Unison nationally urges divestment; TUC debates 2026.