Proposed capital flexibility could see councils explore more risky debt-backed projects at a time when capacity challenges have weakened local oversight, a senior finance officer has warned.
The continued rise in construction costs and high interest rates have forced some councils to halt their capital projects, and some are unlikely to be restarted, a treasury advisor has told PF.
The potential for an auditor intervention over the accounting for a £70m loan has forced Plymouth City Council to apply for exceptional government support.
Declining reserve and cash balances have restricted the use of internal borrowing and left authorities open to greater financing risks, experts have said.
Now-defunct districts relying on short-term borrowing to finance commercial investments have left Somerset Council exposed to higher interest rates and with assets currently losing money, its finance...
A damning independent report on Thurrock Council’s investments highlights the risk of these strategies and the negative impact on services, CIPFA has warned.
Administrators have begun selling the assets of a solar investment company to which Thurrock Council lent more than £650m, in order to repay the company’s debts.
The reliance on falling commercial income to fill funding gaps at Woking Borough Council has placed the authority’s finances at an “immediate risk”, according to an internal report.
Trafford Council has removed a multi-million-pound loan facility for the development of an office campus after the company failed to draw down the finance.
Thurrock Council’s decision to issue a section 114 notice is a necessary step to ensuring exceptional government support, commissioners appointed to turn around the authority have said.
A solar investment company of which Thurrock Council has been named as a “major creditor” has entered into administration in a move the authority has said could help to reduce its high level of debt...
Financial market instability caused by the government’s mini-budget has pushed Public Works Loan Board borrowing rates up to their highest point in a decade, piling more pressure on council finances.
The government is seeking views on whether to retain a statutory override allowing local authorities to exclude changes to pooled investment values from revenue accounts.
The government has closed a loophole that might have allowed councils to use capital receipts to fund revenue costs relating to workforce and service reforms while retaining some kind of ownership of...
