Chief Secretary to the Treasury Danny Alexander has cut the interest rate offered to stock-holding councils to borrow cash from the Government-backed Public Works Loan Board (PWLB) in a bid to support their transition to self financing. Earlier this month, Wandsworth Council announced plans to snub the PWLB and issue a £250m bond to pay the debt it will inherit which is close to £500m. It said the rates available from the markets are better than the "higher interest rates" offered by the PWLB - which has been the traditional way councils have raised finances. Mr Alexander said yesterday: "To support local growth, I can today announce my decision to reduce the interest rate offered to local authorities by the Public Works Loan Board to finance the £13bn of debt needed to leave the Housing Revenue Account subsidy system. Read more on 24dash.
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