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.’

Participatory budgeting image

Participatory budgeting

Evgeny Barkov explains what participatory budgeting means and how it can reveal what citizens need.
SIGN UP
For your free daily news bulletin
Highways jobs

Deputy Chief Executive & s.151 Officer

Wychavon District Council
package to £90k
This is an exceptional career development opportunity, and the perfect role for a talented public service leader with ambition. Worcestershire
Recuriter: Wychavon District Council

Senior Practitioner - Family Support & Protection

Essex County Council
Up to £237 per day + Umbrella
Managing a defined caseload, the social worker is responsible for working effectively with children, young people and families/carers to achieve positive change and improved outcomes. England, Essex, Basildon
Recuriter: Essex County Council

Qualified Social Worker - Family Support & Protection

Essex County Council
Up to £207 per day + Umbrella
Managing a defined caseload, the Social Worker is responsible for working effectively with children, young people & families/carers to achieve positive change and improved outcomes. England, Essex, Basildon
Recuriter: Essex County Council

Qualified Social Worker - Assessment & Intervention Team

Essex County Council
Up to £207 per day + Umbrella
Managing a defined caseload, the Social Worker is responsible for working effectively with children, young people & families/carers to achieve positive change and improved outcomes. England, Essex, Basildon
Recuriter: Essex County Council

Qualified Social Worker - Assessment & Intervention Team

Essex County Council
Up to £207 per day + Umbrella
Family Operations delivers direct provision of services relating to vulnerable children, young people and complex families. England, Essex, Harlow
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