In a bid to slash on-going costs of £30 million London's councils are considering pooling their administration for pensions.

Some 32 boroughs, alongside the City of London Corporation and the London Pensions Fund Authority, could see their processing costs fall "sharply", it has been proposed.

London Councils, an umbrella group pushing for the changes, said “there was a commitment to explore further the proposals for the creation of a London Pensions Mutual, as a pan-London investment fund."

The councils have also estimated that by combining the funds invested, they will be able to better co-ordinate and direct up to £2.25 billion funds into local infrastructure projects.

"Each scheme has separate advisers, administrators, fund managers with their performance fees – if councils work together that cost can be steeply cut," said Sir Merrick Cockell, chair of the Local Government Association.