One of the largest consultants to the UK's local government pension system has given its blessing to a complete redrawing of investment mandates to create a small number of super funds.

Following a budget announcement, the 89 council schemes, worth an average of £2.5 billion, are being nudged to create five or six asset pools worth £20 billion to £40 billion apiece, although liabilities will still be handled at a local level. Those who resist the nudge face more serious pressure.