Where the boroughs borrow

Article Abstract:

The government's decision to reduce the Public Works Loan Board's interest rates is forcing private lenders out of the municipal loans market, as they are unable to compete with these interest rates. It has now become unattractive for authorities to borrow privately, especially as there is no longer any advantage in converting existing long-term borrowings into new bonds at lower rates. Some observers believe that the decision to lower interest rates was politically motivated, as it allows the government to retain control of local authority borrowings.

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Town halls go shopping for finance

Article Abstract:

Local authorities have until recently been opposed to the government's Private Finance Initiative, partly because they are prevented from using capital receipts from sales in full until debts have been paid off. However, councils are now starting to see the advantages of using private funds to revitalise city centres, using schemes which provide them with benefits other than capital receipts, such as payments in kind. Even Labour-controlled local authorities are now seeing privately financed schemes as the only way to undertake large capital projects.

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Council tax to rise?

Article Abstract:

The UK government looks set to relax council tax capping, and this will lead to rise in council tax rates which are considerably higher than the rate of inflation. Councils have already been affected by reductions in the Standard Spending Assessment, and there will be particular problems in 1997 for councils for which the 1996 council tax was boosted by collecting large debt arrears, including old unpaid poll tax.

United Kingdom, Tax policy

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