Government reins in UK council borrowing with new PWLB guidelines

UK Treasury adobe stock 575x375
By Silas Brown
25 Nov 2020

The UK government tightened guidance for local authority borrowing on Wednesday, in a bid to stymie the riskier borrowing-to-invest models certain UK councils have adopted over the past decade.

In a report published on Wednesday, the treasury said that a group of local authorities had been borrowing from the Public Works Loan Board (PWLB) in order to buy commercial real estate for the yield.

“The government is clear that this is not an appropriate use of PWLB loans,” ...

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