A PR win for Rachel Reeves and the Treasury, and they needed one.

In football terms, they were 6-0 down after just 20 minutes and, as radio commentators like to joke, lucky to have nil.

The Chancellor’s plan to merge council pensions into eight £50bn “megafunds” has been well received, not least by the City which is sniffing extra advisory fees.

But just because the City is likely to do well here, that doesn’t automatically make it a bad idea (just usually).

The hope is that the funds will boost investment in infrastructure, £80 billion worth perhaps, since they suddenly have increased firepower and can still take a longer-term view than almost any other investor.

The funds will be free to invest in a more diverse range of assets, those that are higher risk but should give a better return in time.

An example from a market insider:

Take ITM Power, a hydrogen play based in Sheffield. Great for the environment, great for the local economy, shares trading at a knock down price.

What’s not to like for Sheffield council?

(ITM going bust, but it shouldn’t.)

The FT makes a passing reference to the more “radical options” that were rejected.

What were they? Well, some thought they were going to demand the pension funds unleash capital to fuel small cap “growth” companies.

By growth companies, they mean stocks no one wants because they haven’t actually grown for years. Firms that in some cases do basically nothing, they just have a listing.

Under this feared plan, council workers pension money would have gone into tiny companies and other illiquid investments, in the name of boosting markets.

The sellers would have been investors who made bad bets years ago and couldn’t believe their good fortune.

Bad luck road sweeper Dan – my crappy share portfolio is now yours.

There are, at least, no demands from the government for this to happen – yet.

There are always pages of small print following the release of such a big venture as this one from Reeves and one trusts the Sunday papers and their sources are reading them closely.

For now though, this was a well PR’d win for Reeves.

Since she had The Treasury, the Cabinet Office and probably the London Stock Exchange Group advising and guiding, it should have been.

But credit where it’s due.

And we’ll keep watching to see if this good idea doesn’t later lead to the introduction of some dreadful ones.

Please send candidates for press release of the day to: Simon.english@roxhillmedia.com