The final local government finance settlement of 2015/16 has recently been announced and with it came another reduction in the spending power of local authorities. Central government grants to local authorities are also likely to be cut further. Continued pressure on local authority budgets and a reliance on loans from the Public Works Loan Board (PWLB) means that local authorities must look at alternatives to central government funding as a means of financing services.
One way will be through new methods of borrowing. The UK Municipal Bond Agency (UKMBA) will soon be providing an alternative to borrowing from the PWLB and at lower rates, which could save as much as £1bn for local government in the coming decades.
NLGN held a roundtable discussion with contribution from then Shadow Chief Secretary to the Treasury, Chris Leslie MP to discuss the implications of the UKMBA and consider the future of financing local government. This paper details the key themes of the discussion.
Download report HERE