Clause 13 - Security for money borrowed etc
Local Government Bill
10:45 am
Mr Christopher Leslie (Parliamentary Secretary, Cabinet Office; Shipley, Labour)
I do not know whether the position would be any better if the loan was secured on a particular fire station or property, which would give a certain amount of risk exposure to that essential facility. I would question the sense of securing that borrowing against an essential asset.
I will provide the note on the PWLB rate. The hon. Member for Runnymede and Weybridge asked whether the receiver powers would be the same as at present. They will be, although there is a change to the threshold so that the default powers cannot be triggered if the debt is below £10,000. The present threshold is £5,000.
The hon. Member for Poole (Mr. Syms) asked whether bonds would be affected. They will not be affected by the clause, which relates only to borrowing. It does not prevent the use of bonds to raise cash, but it means that they would have to be secured on all the local authority's revenues. I hope that that answers his question, but I do not think that it does.