There has been significant disquiet in the sector following the Treasury's 1% increase in the cost of loans from the Public Works Loan Board (PWLB). This is entirely understandable, but in my view, misses the bigger picture.

It is not my place to defend the Treasury's actions, but the realpolitik was that the Government was coming under increased pressure for change from three sources: first, a significant acceleration in council PWLB borrowing, from less than £2bn in 2013/14, to £9bn in 2018/19, and on course for well over £12bn in the current year.