Shares embarrass Labour

Scotland's Labour-controlled regional councils yesterday confirmed that they have invested millions of pounds of their pension funds in English water companies.

Their admission comes at a time when the Scottish Labour Party nationally is vigorously campaigning against any moves by the Government to privatise Scotland's water industry.

Although most of the regions claimed that external fund managers had taken the investment decisions, the size of the investments, totalling more than pounds 25m, is being seen as an embarrassment to the Scottish party leadership.