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.”
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