Agenda item

The Chair invited Bevis Ingram to introduce the report.

Bevis explained that the Government was consulting on proposals aimed at preventing councils borrowing from the Public Works Loan Board (PWLB) to buy investment assets primarily for yield. More specifically, that any council which undertakes commercial investment in a particular year will be prevented from borrowing from the PWLB within that year. Bevis reported that the Resources Board Chair had appeared before the Public Accounts Select Committee to make the point that the number of councils borrowing for this reason was tiny and so the Government’s proposals were therefore excessive. The LGA response to the consultation therefore reflected this.

Bevis said that the consultation had taken on added significance since the Covid-19 outbreak as the PWLB could play a role in easing council’s cashflow problems. This had also been added to the LGA response.

Members agreed with the broad thrust of the LGA response but suggested that it should be further strengthened to reflect their strong opposition to the proposals.

Decision

Members of Resources Board endorsed the LGA’s consultation response but requested that it be strengthened to reflect the level of opposition to the Government’s proposed PWLB borrowing restrictions.

Action

Officers to revise consultation response and circulate to Lead Members for final approval.