How to set locale in postgres using docker-compose?

I've tried multiple ways of changing the locale to en_GB and nothing seems to work.

My current docker-compose.yml

version: '3.9'

services:

  db:
    image: postgres
    restart: always
    build: 
      context: .
      dockerfile: ./Dockerfile
    ports:
      - 5432:5432
    volumes:
      - ./pg-data:/var/lib/postgresql/data
    environment:
      POSTGRES_USER: ${POSTGRES_USER}
      POSTGRES_PASSWORD: ${POSTGRES_PASSWORD}
      POSTGRES_DB: ${POSTGRES_DB}
      PGDATA: ${PGDATA}
      # LANG: 'en_GB.UTF-8'

  adminer:
    depends_on: 
      - db
    image: adminer
    restart: always
    ports:
      - 8080:8080
  
volumes:
  pg-data:

An official postgres image docs says to create a Dockerfile with:

FROM postgres
RUN localedef -i en_GB -c -f UTF-8 -A /usr/share/locale/locale.alias en_GB.UTF-8
ENV LANG en_GB.utf8

However this has no effect whatsoever.. Tried setting enviorment variable LC_* and LANG however this throws build error of enviorment variables being configured wrong.

Having just a Dockerfile without the enviorment variables set container builds and db is being reinitialized but while running first migration with knex the table consisting money type is still in dollars.

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