Neil Devlin of Finsbury Park-based lobby group the Campaign Against Arms Trade

AN anti-war campaign group has called on the council to stop investing in companies that manufacture military vehicles and equipment.

It is understood that Islington’s Pension Fund owns shares worth up to £2.5million in “defence and aerospace” companies, including just over £1million in BAE Systems – a company that has sold billions of pounds of weaponry to the Saudi Arabian regime in the past few years.

Saudi Arabia’s role in the devastating conflict in Yemen has been criticised by many in the UK including Islington South MP Emily Thornberry and Islington North MP Jeremy Corbyn.

Neil Devlin, a spokesman for the Finsbury Park-based lobby group the Campaign Against Arms Trade (CAAT), has now called for the Town Hall to roll back its investments in aerospace and defence firms.

Mr Devlin, of Horsell Road, Highbury, said: “I think the arms trade is probably the worst thing we could be investing in and the UK is the second biggest exporter of arms on the planet. It’s terrible and Islington’s Pension Fund should not be supporting this.”

In 2018, the council pledged to reduce its exposure to companies that extract fossil fuels as part of its wider plans to “decarbonise” the fund following a community campaign.

Mr Devlin added: “I was told that the council’s hands are tied when it comes to the pension fund because they have a duty to get the best returns for those involved.

“Well, that doesn’t work for me. The council has announced it will divest from fossil fuels, so why can’t it do the same for the arms trade?”

There are around 21,000 members with a stake in Islington’s fund, including 6,600 currently drawing money from their pension. It is understood that the investment portfolio stands at more than £120million.

Councils have a legal duty to ensure “best returns on their investments” for their pensions pots, which stymies decisions based purely on ethical considerations.

An Islington Council spokesperson said: “Islington Council is committed to ensuring that its pension fund achieves maximum growth from its investments, whilst abiding by the council’s social and environmental responsibilities.

“Our pension fund has consistently been at the forefront of the decarbonisation movement, and investments are made in accordance with the council’s high ethical standards.”

A BAE Systems spokeswoman said: “As a major employer supporting thousands of highly skilled jobs across the UK, we are proud to deliver cutting-edge technologies and capability to our Armed Forces which help to keep our nation safe.”

“We provide defence equipment, training and support under govern­ment to government agreements between the UK and Kingdom of Saudi Arabia.”

She added: “We comply with all relevant export control laws and regulations in the countries in which we operate and our activities are subject to UK government approval and oversight.”