GREENWICH COUNCIL has admitted its investment policy is unlawful, showing that councils can divest from Israel, campaigners said today.

In a legal challenge, the council accepted that a clause in its Local Government Pension Scheme Investment Strategy was “legally erroneous” by saying it could not exclude investments to pursue boycotts, divestment or sanctions.

The clause, in place since 2020, will now be removed.

The Public Interest Law Centre, acting for claimant Lubna Speitan of Greenwich Palestine Alliance, said the council had failed to inform scheme members or the public that it was aware the policy was incorrect.

Greenwich Council currently holds more than £61.8 million in complicit investments.

Ms Speitan said the concession confirmed that the council “always had the power to divest,” adding: “For decades, I have watched helplessly as my Palestinian family and people have been subjected to constant attack, displacement, torture and slaughter.

“By maintaining these investments, Greenwich has been a participant in the genocide.

“Now, Greenwich must act swiftly to implement full and permanent divestment from Israel.

“This landmark concession shatters the myth of powerlessness. Councils can no longer hide behind unlawful policies.”

Greenwich council was approached for comment.