Question
To ask the Secretary of State for Housing, Communities and Local Government, pursuant to his Answer of 20 April 2021 to Question 178793 on the Prudential Framework, what assessment he has made of the adequacy of the prudential framework for dealing with investments made by Thurrock Council.
Answered on
21 May 2021
Local authorities are responsible for their own commercial investment strategies and are accountable to their electorate. Nevertheless, in making investments, authorities must ensure they comply with the Prudential Framework, including the four statutory codes.
Recent changes to the operation of the Public Works Loan Board (PWLB) are designed to stop local authorities from accessing PWLB borrowing if they are planning on undertaking investments primarily for yield. Government is also working closely with CIPFA on its revised statutory Prudential Code. Further, Government is currently reviewing all elements of the Prudential Framework to ensure they are fit for purpose.