Commenting on the government's response to its PWLB consultation, CIPFA Associate Director Andy Burns said:
“The government’s lowering of PWLB lending rates announced today will have a positive and welcome impact on councils’ ability to enact plans to regenerate their local areas, and I’m sure will be greeted warmly by the sector at large.
“CIPFA has always been entirely clear that the Prudential Code prohibits borrowing to invest in commercial assets purely for yield.
“The requirement to submit three year overviews of capital spending plans in order to access PWLB funds supports the need to drive down the minority of councils investing for profit without overriding the enabling spirit of the prudential framework.”
ENDS
For further information or for interview requests, please contact the CIPFA press office on T: 020 7543 5737 or E: ashleigh.moore@cipfa.org
About CIPFA
CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. CIPFA shows the way in public finance globally, standing up for sound public financial management and good governance around the world as the leading commentator on managing and accounting for public money.