Kingston Council’s health credentials were called into question this week, when it emerged it has £4m invested in tobacco companies.

Shares in the Imperial Tobacco Group and British American Tobacco are part of its pension fund portfolio, despite the borough citing reducing smoking as one of its priorities.

Critics claimed profit was being put before ethics and there are alternative companies to invest in.

A breakdown of the council’s pension fund investments, released this week, showed £2.72m invested in British American Tobacco and £1.28m in the Imperial Tobacco Group.

More than £200,000 of shares are also held with betting companies and pub chain Wetherspoons.

A Kingston Council spokesman insisted it has a duty to maximise returns for its beneficiaries and “investment decisions must be made on financial grounds alone”.

He said the council is in a position of trust and cannot risk the security of investments by giving in to social, ethical or political demands.

Councillor Howard Jones, leader of the opposition, said: “I’m absolutely amazed that the Liberal Democrats, who have been in charge for many years, haven’t stopped this happening. If we were in power, we would look at it.

“I’m personally not happy that we’re supporting smoking and the smoking industry.”

Amanda Sandford, from anti-smoking charity ASH, said: “Unfortunately the tobacco industry does get good financial returns. They produce a very cheap crop and sell it, quite expensively, to people who are addicted.”

Kingston Council boasts on its website that it is working in partnership with Kingston Primary Care Trust to create an “action plan” to reduce the number of people who smoke.

Last financial year, NHS Kingston spent £190,000 on its Stop Smoking Service and 177 deaths in the borough were linked to smoking.

In total, the council’s pension fund has more than £270m invested in 453 different companies.

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