Councils are increasingly prepared to use alternative methods of capital financing to fund projects such as schools and highways, a study issued by the New Local Government Network (NLGN) claims today.

According to research by the think-tank based on interviews with senior finance officers, local authorities are keen to embrace a wider variety of finance options such as retail bonds, following the Government's decision to raise by 1% borrowing rates for the Public Works Loan Board (PWLB).