The Government has pledged to modernise lending to local authorities, and has begun consultation on transferring the powers of the Public Works Loan Board (PWLB) to the Treasury.
The Government claims the move would increase the efficiency of lending to local government and create greater accountability to ministers.
‘As local government continues to gain further decision-making powers, it’s right that we consider whether the governance, composition and status of the PWLB is fit for the twenty-first century,’ said economic secretary to the Treasury, Harriett Baldwin.
‘The reforms set out in today’s consultation will create a more streamlined and up-to-date governance arrangement. The government’s preferred option to transfer the functions of the Public Works Loan Board to HM Treasury, will secure greater accountability to ministers and enhance the efficiency and effectiveness of central government lending to local authorities.’
Under the proposals, responsibility for setting loan rates and repayment terms will transfer to the Treasury.