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.
For your free daily news bulletin
Highways jobs

Assistant Director Practice Improvement and Development

Birmingham Children's Trust
Up to £92,681 plus market supplement and relocation allowance (subject to terms and conditions)
We have developed an environment where learning, development and practice improvement are underpinning principles service wide. Birmingham, West Midlands
Recuriter: Birmingham Children's Trust

Social Worker (Safeguarding Adults Team)

Sandwell Metropolitan Borough Council
£29,636 - £33,799 per annum
The safeguarding team have an excellent opportunity for an experienced qualified Social Worker who... Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Occupational Therapist (Short Breaks- Residential and Community)

City of York Council
£30,500 to £34,797 per annum
Looking to recruit an Occupational Therapist who is able to meet the needs of children and young people with... York, North Yorkshire
Recuriter: City of York Council

Social Worker - SGO & Connected Person Assessment Team

Essex County Council
Special Guardianship Order (SGO) & Connected Person Assessment Team The SGO and Connected Person's Assessment Team first started in April 2019 and due England, Essex, Chelmsford
Recuriter: Essex County Council

Programme Support Officer

Royal Borough of Greenwich
£29.766 - £30.711
This role is a programme support officer which will assist the delivery of vital monitoring, control and governance work to... Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

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