Surrey County Council has come under fire for investing £28.5m in "aerospace and defence" - which includes some of the world’s largest arms companies.

Campaigners say many employees are ‘repelled’ to see the council’s pension fund invested in companies which they say produce weapons used by repressive regimes.

Last month the council was accused of a shocking conflict of interest for taking on the task of helping people quit smoking while retaining more than £12m in tobacco companies.

Its Pension Fund Board which agrees its investment strategy is due to meet on Friday and is due to consider whether it should keep its money in tobacco companies following a series of complaints.

The meeting comes at a time when the Government is considering supplying arms to factions taking part in the savage civil war raging in Syria.

The Campaign Against Arms Trade (CAAT) said it is shocked that the council has increased its investment in aerospace and defence by almost 45 per cent over the last five years.

CAAT spokeswoman Kaye Stearman said: "Many people working in local government, including those in the caring professions, are repelled by the thought that their hard-earned funds are invested in arms companies.

"It is ironic that Surrey, one of the world's most peaceful places, is investing in companies producing weaponry used in some of the world's most repressive regimes."

Ms Stearman said arms companies develop technology which kills and maims people, adding: "The arms business is deeply corrupt and secretive."

The council has nearly £13.5million invested in BAE Systems, which evicted anti-arms protesters from its AGM in Farnborough in May.

CAAT opposes BAE systems selling Typhoon jets and other warplanes to Oman and Saudi Arabia and claims the Saudis sent British-made armoured personnel carriers into Bahrain to suppress protests in 2011.

£1.3m is invested in Chemring Group which makes shells, mortar bombs and grenades and £2m in Thales, which supplies a huge range of technological systems for air forces, navies and armies around the world.

Lib Dem spokesman on pensions County Councillor John Orrick said they should have a serious look at investments such as armaments, tobacco, alcohol and betting.

Coun Orrick said: "My own personal point of view is I would wish that we only have ethical investments. However, I understand that is not necessarily the best way to get pension fund returns.

"There’s a duty to people who receive and will receive pensions as well as public good. I understand it’s very much a double-edged sword."

A Surrey County Council spokeswoman said they cannot tell for sure how much of the investments, if any, are in arms because the industry category of aerospace and defence contains large conglomerates producing a wide range of products.

She said: "The pension fund is run for over 100 public bodies in Surrey, including the county council, and only a tiny amount - just over 1 per cent - is invested in 'aerospace and defence'.

"We have a responsibility to ensure we invest in businesses that maximise returns."

Residents' Association County Councillor Eber Kington said: "I suspect if you go into all pension funds there are areas of legal businesses that some of the residents may wish not to be involved.

"Until any local authority, or Surrey County Council, decides they want to have an ethical policy on pensions that is what is going to happen."

What do you think about Surrey County Council investing in aerospace and defence? 

Please email reporter Alice Foster on alice.foster@london.newsquest.co.uk or leave a comment below.