Councils had been told that they could not pursue policies contrary to UK foreign or defence policy and it was inappropriate to use pension funds as a means of sanctions against certain countries.
The PSC’s appeal to the Supreme Court was supported by the Quakers and the Campaign Against Arms Trade.
But in a minority opinion, Supreme Court judges Lady Arden and Lord Sales supported the government’s right to act.
Citing the background to the government’s original guidance, they quoted an official from the then Department of Communities and Local Government, who explained the government feared that the BDS movement might undermine “UK foreign policy and UK legitimate trade”.
There were also “concerns about whether such campaigns might be perceived as legitimising antisemitic or racist attitudes and attacks,” the official said.
