Local Government: Debts

Ministry of Housing, Communities and Local Government written question – answered on 14th July 2021.

Alert me about debates like this

Photo of Lord Taylor of Warwick Lord Taylor of Warwick Non-affiliated

To ask Her Majesty's Government what steps they are taking to assist local authorities in managing debt levels.

Photo of Lord Greenhalgh Lord Greenhalgh Minister of State (Housing, Communities and Local Government), The Minister of State, Home Department

Local authorities borrow and invest under the Prudential Framework. This is a permissive system that gives local authorities wide freedoms for borrowing and investment, and it is for authorities to manage their capital strategies and ensure their borrowing is prudent, affordable and sustainable. However, authorities must operate within the legal bounds of the Framework, which sets the statutory duty to ensure all borrowing is affordable, and have regard to the statutory guidance, which sets out good practice.

Government is currently reviewing all elements of the Prudential Framework to ensure it is fit for purpose, and carefully considering where changes are needed to support good investment decision-making and risk management.

Does this answer the above question?

Yes1 person thinks so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.