Laura Sharman 07 May 2019

Council to save £143m after ending LOBO loan

Council to save £143m after ending LOBO loan image

Newham Council is set to £143m after successfully terminating its Lender Option Borrower Option (LOBO) loans with NatWest bank.

The agreement will allow the council - which took out six LOBO loans with the bank in 2009 - to pay off the loans at a considerably lower rate of interest.

The mayor of Newham, Rokhsana Fiaz, said: 'Over the past ten years that the loans have been in place, it’s cost us an extra £31m in interest payments compared to borrowing from the PWLB. That’s money that should have been spent on Newham residents.

'Earlier this year, I made a promise to Newham residents that I’d make every penny count and that’s why this council filed a claim against the bank in the High Court in February. The deal that we’ve successfully nailed down today means that we’ll be saving up to £143m for Newham residents, which is a successful resolution of this litigation.'

In 2015, the Channel 4 Dispatches programme found that around 240 local authorities have taken up to £15bn in LOBO loans from private banks, which charge interest rates of more than 7% in some cases.

Research published last year showed councils could save £16bn by refinancing LOBO loans.

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.
SIGN UP
For your free daily news bulletin
Highways jobs

Service Director – Development & Regulation

West Berkshire Council
Up to £96,585 per annum
We are looking for a candidate with the passion for place making and a successful track record in leading and developing large multi-service teams.  Newbury, Berkshire
Recuriter: West Berkshire Council

Mayoralty & Business Manager

London Borough of Richmond upon Thames and London Borough of Wandsworth
£41,292 - £50,034
The Mayoralty & Business Manager will be responsible for maintaining the reputation of both Mayoralties and promoting a positive image of... London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Joint Assistant Director - Communities and Wellbeing

Babergh & Mid Suffolk
£75,000
Babergh and Mid Suffolk District Councils are at the forefront of joint working and are a progressive award-winning partnership Ipswich, Suffolk
Recuriter: Babergh & Mid Suffolk

Financial Case Management Officer

Telford & Wrekin Council
£22,627 - £24,491 per annum
The Financial Case Management Officer will sit within the Adult Social Care, Service Improvement & Efficiency service and will be responsible for... Telford, Shropshire
Recuriter: Telford & Wrekin Council

Social Worker - Family Support and Protection

Essex County Council
£32065 - £43839 per annum + + Free On-Site Parking % Local Gov Pension
This position is open to Newly Qualified Social Workers (NQSWs) and Experienced Social Workers. The starting salary for a NQSW is £28,592 per annum a England, Essex, Basildon
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