Government threatens borrowing cap return

By Dan Peters | 29 July 2021

The Government has threatened to apply statutory borrowing caps on councils that continue to expose themselves to excessive risk.

A policy paper from the Ministry of Housing, Communities and Local Government (MHCLG) said the evidence was ‘clear that the system is failing in some places’ and vowed to make ‘further changes to how the prudential system works if problematic behaviour continues’.

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Whitehall Finance MHCLG Policy CIPFA