LocalGov.co.uk - Your authority on UK local government - Proposal for stronger local government Prudential Code
Proposal for stronger local government Prudential Code Proposals to strengthen the Prudential Code and prevent local authorities from borrowing to generate yield have been put forward by CIPFA. The move comes following growing concerns that some councils are taking on disproportionate levels of commercial debt to generate yield. The proposed changes would make it clear that borrowing for debt-for-yield investment is not permissible under the Prudential Code, and ensure that any commercial investment is consistent with statutory provisions. The changes would also see the introduction of new pr...
Source: localgov.co.uk