To ask Her Majesty's Government what rates of interest the Public Works Loan Board charges to local authorities; what security, if any, it requires for such loans; and what are the normal repayment terms for its loans.
18 December 2018
The rates of interest charged on Public Works Loan Board (PWLB) loans are determined by the UK Debt Management Office (DMO) using a methodology specified by HM Treasury (HMT) in accordance with section 5 of the National Loans Act 1968.
Under section 2 of the Public Works Loans Act 1965, loans to local authorities are automatically secured on all the revenues of the local authority.
The repayment terms of the loans are dependent on the type of loan and repayment method. This can be a mix of principal and interest during the life of the loan, or interest only with the entire principal repaid at the end of the term.