Laura Sharman 25 September 2017

Campaigners call for inquiry into councils' 'toxic' loans

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.’

SIGN UP
For your free daily news bulletin
Highways jobs

General Assistant

Northumberland County Council
£7,927 - £8,006
You must be a hard worker, able to work quickly and efficiently, and a good team worker. Northumberland
Recuriter: Northumberland County Council

Support Worker - Thera Trust

Essex County Council
Up to £20000 per annum
Support Worker - Thera TrustPermanent, Full and Part Time £9.50 per hourLocation
Recuriter: Essex County Council

Waking Nights Support Worker - Achieve Together - Holland Road

Essex County Council
Up to £19760 per annum
Essex County Council (ECC) are delighted to be supporting Achieve Together to recruit Support Workers for their supported living service, Holland Road England, Essex, Clacton-On-Sea
Recuriter: Essex County Council

Enablement Support Worker

City of Bradford MDC
£18,887 - £19,264
People who are driven, energetic, enthusiastic, motivated, and are committed to delivering good quality person centred care. Bradford, West Yorkshire
Recuriter: City of Bradford MDC

Home Carer - Fambridge Care LTD

Essex County Council
Up to £20000 per annum
Home Carer - Fambridge Care LTDPermanent, Full Time and Part Time £9.50 to £9.70 per hourLocation
Recuriter: Essex County Council

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.