Laura Sharman 25 September 2017

Campaigners call for inquiry into councils' 'toxic' loans

Campaigners call for inquiry into councils toxic loans image

Residents have raised objections against risky high-interest loans in 46 local authorities, campaigners have revealed.

Debt Resistance UK have been encouraging people to file an objection against Lender Option, Borrower Option (LOBO) loans, after an investigation revealed local authorities had taken up to £15bn in LOBO loans.

The figures published by the group show 61 LOBO loan objections have been made across 46 local authorities, covering 50% of the combined loan debt.

They are now calling on the Government to reopen the LOBO loan inquiry.

Fanny Malinen from Debt Resistance UK said: ‘Residents are increasingly concerned about the impact of LOBO borrowing to their councils’ ability to meet their civic duties and provide the services people so urgently need. This is why we are supporting residents to use their legal right to object to this irrational spending councils have been lured into by banks and advisers.

‘Resident action at the local level will not be enough if Government and regulators don’t act to stop the profiteering. There’s already a severe crisis in local authority funding following central government cuts, resulting from bailing out many of the same banks that sold councils LOBOs.

‘Instead of tackling the crisis, further deregulation of local authority finance is driving councils into the arms of private financiers and property speculators. The consequences will prove disastrous for the public purse.’

Time for a council tax precept to fund CCTV image

Time for a council tax precept to fund CCTV

The crisis in funding for CCTV systems is not being addressed by the government or the police and is leading to the curtailment of this vital service in local authorities across the country. How can we ensure that communities that want this service continue to receive it, asks Tom Reeve.
For your free daily news bulletin
Highways jobs

Senior Commissioning Officer - Community Catalyst

Essex County Council
Up to £35026 per annum
Senior Commissioning Officer - Community CatalystFixed Term, Full TimeUp to £35,026 per annumLocation
Recuriter: Essex County Council

Resource Centre Worker

North Yorkshire County Council
£20,493 - £24,982 per annum, pro rata
We work closely with families and other professionals to ensure that we have sound knowledge of the children we are caring for and are able to... Harrogate, North Yorkshire
Recuriter: North Yorkshire County Council

Relationship Manager

We are looking for an engaging and amiable professional with experience working for, or with, local authorities and an eye for detail. United Kingdom
Recuriter: iChoosr

Adults Service Manager - South

Essex County Council
£58727 - £66963 per annum
Adults Service Manager - SouthFixed Term, Full Time£58,727 - £66,963 per annumLocation
Recuriter: Essex County Council

Pension Officer

Essex County Council
Pension Officer Temporary, Full Time £10.42 - £12.26 per hour Location
Recuriter: Essex County Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue