The Prudential Code For Capital Finance In Local Authorities (2021 Edition)

Local authorities are required by regulation to have regard to the Prudential Code when carrying out their duties in England and Wales under Part 1 of the Local Government Act 2003, in Scotland under Part 7 of the Local Government in Scotland Act 2003, and in Northern Ireland under Part 1 of the Local Government Finance Act (Northern Ireland) 2011.

Key developments included in this version of the Prudential Code include strengthened and clear provisions within the code for prudent investing. definitions and disclosures for service, treasury and commercial investments. This new Prudential Code contains a new objective for proportionate service and commercial investments.

Further developments for capital strategies have been made following their introduction in 2017, such as setting the strategy in the context of the organisation's corporate objectives.

Details of licensing arrangements for other categories of purchaser, which includes those organisations operating shared service arrangements, are available from CIPFA's Publications Department.