Tuesday February 17th 2026
Scottish Borders Council headquarters
Written by Local Democracy Reporter, Paul Kelly
Scottish Borders Council hope the dividends will be great after it announced a new £30m investment.
The council’s Pension Fund has committed the funding to the major new UK Social Investment Fund soon to be launched by M&G plc, contributing to M&G’s ambition to unlock over £1 billion of long-term investment over the next three to five years in affordable housing, regeneration, clean energy and essential infrastructure across the UK.
The council has made the investment to secure long-term financial returns while driving local economic growth through projects like affordable housing, urban regeneration, and clean energy.
This initiative aligns with goals to improve community well-being, upgrade infrastructure, and support sustainable development across the UK.
The commitment positions Scottish Borders Council as one of the first investors in the M&G UK Social Investment Fund, which aims to deliver positive social and economic outcomes while generating long‑term returns for pension members.
The Fund will support projects that improve community well-being, provide affordable homes, decarbonise infrastructure and stimulate local economic growth.
The financing will bring institutional capital into projects across the country, including opportunities to work with local authorities and housing providers on purpose‑built accommodation for young care leavers and the delivery of additional affordable homes.
Councillor David Parker, chair of the council’s Pension Fund Committee, said: “Scottish Borders Council is delighted to be investing in M&G’s new UK Social Investment Fund, which represents a major opportunity to channel long‑term capital into projects that genuinely improve lives.
“This commitment will help drive economic growth and support communities right across the country, with high‑quality initiatives that deliver real and lasting impact.
“We are confident that M&G’s strong track record and expertise will ensure this investment brings meaningful benefits to local areas throughout the UK.”
The Fund will be managed by M&G’s private markets business and is aligned with the UK Government’s policy objective to encourage Local Government Pension Scheme funds to support long‑term UK economic growth.
There are risks for local councils investing in the new M&G plc social investment fund, primarily centred on liquidity, market volatility, and the “immature” nature of social impact markets.
While aiming to fund infrastructure and housing, such investments may expose cash-strapped councils to financial losses, high-interest rate sensitivities, and potential public scrutiny.
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