FINANCE

The growth of inter-authority lending

In the second of a series of articles from the National Audit Office unpicking the complex and often overlooked world of local authority capital expenditure and resourcing, Aileen Murphie explains the growth of inter-authority lending

In June 2016 the National Audit Office (NAO) published a report entitled Financial Sustainability of Local Authorities: Capital Expenditure and Resourcing. This was followed in July by an interactive data visualisation providing the underlying data from the report for each local authority.

The NAO found local authorities have £25.2bn of investments on deposit in 2015/16. These have grown by £6.2bn (32%) since 2010-11 and are near their highest level in a decade. London boroughs have led the way with deposits increasing by 53% since 2010/11, but unitary, county and district councils have also increased their investments.

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