Lancaster City Council has effectively over-ruled its Boycott Divestment and Sanctions (BDS) motion against Israel in a unanimous vote yesterday, 29 September 2021. Lancaster Council had passed a BDS motion on 23 June, which had been criticised by Lancaster & Lakes Jewish community, Lancaster University Jewish Society, and UK Lawyers for Israel (UKLFI).

The Council has now passed a new motion which recommends the development of a comprehensive ethical and sustainable investment policy. It amends the BDS motion to have the effect of not making or requesting any investment changes until the comprehensive policy is agreed by Council and that any future requests be made in accordance with that policy.

The new motion was prepared by a cross-party group of councillors in the light of criticisms of the BDS motion and was supported by the Lancaster Jewish Community, University Jewish Society and UKLFI.

The BDS motion, passed on 23 June 2021, had resolved to “express its support for the Boycott, Divestment, Sanctions (BDS) movement’s demands that Israel ends injustices that infringe international laws and Palestinian rights” and “write to the Lancashire County Pension Fund … and the Local Pensions Partnership urging that they adopt policies requiring them to divest from all companies active in illegal Israeli settlements in Palestine and all arms companies which supply weapons to Israel”.

UKLFI wrote to Lancaster City Council pointing out that the BDS motion had been passed unlawfully and without due regard to the need to foster good relations between persons of different religions, ethnicities and nationalities, as required by the “Public Sector Equality Duty” in section 149 of the Equality Act. Moreover, it was based on inaccurate information and was antisemitic by applying different standards to Israel than to other states.

UKLFI also wrote to the Lancashire County Pension Fund and Local Pensions Partnership warning them that it would be unlawful to comply with the divestment demand in the City Council’s resolution.

The new motion states:

“The Council notes that …

 it is preferable to take a comprehensive approach to an ethical and sustainable investment policy rather than addressing it on a topic-by-topic basis; …

 10. consistently with the obligation in section 149 of the Equality Act 2010, the development of the policy must have due regard to the need to foster good relations between persons of different nationalities, ethnicities and religions.

 The Council hereby resolves to:

 (a) Recommend that Overview and Scrutiny Committee establish a formal task group to consult on and develop a comprehensive ethical and sustainable investment policy for consideration by Cabinet;

 (b) To amend Council’s previous resolution of 23 June 2021 (in respect of the Boycott, Divestment and Sanctions movement motion) to have the effect of not making or requesting any investment changes until a comprehensive ethical and sustainability policy is agreed by Council and that any future requests be made in accordance with that policy.”

 The Council Officers’ briefing note for the new motion observed:

“5. Failure to comply with the Equality Act 2010, and specifically the Council’s duty under s149 of the Act, may undermine public confidence and may result in legal challenge (by judicial review). A legal challenge may result in a decision being quashed and the Authority being ordered to pay considerable costs.

 6. The Council’s section 149 duty applies to resolutions of Full Council and to decisions of the kind made on 23 June 2021 (see Jewish Rights Watch v Leicester City Council [2018] EWCA Civ 1551. [I]t is a mandatory duty and one that the Council must perform in the exercise of its duties.

 7. The amendment to the resolution made on 23 June 2021, will ensure that the Council’s approach to investments in the future is informed by a comprehensive policy. Moreover, it will greatly assist the Council with regards to its s149 duty under the 2010 Act.”

 UKLFI Chief Executive, Jonathan Turner, commented:

“We welcome the new motion and commend Councillors Erica Lewis and Richard Austen-Baker who led efforts to prepare the motion and secure cross-party support. It is vitally important for us all to work together to secure a sustainable planet without being distracted by divisive arguments fired up by prejudice and misinformation.”

Naomi Tadmor, Chair of Lancaster and Lakes Jewish Community commented: “We are grateful and relieved that the Council has endorsed a non-racist ethical policy. We are reassured by the large majority and look forward to resuming our quiet community life.”