Question to the Department for Levelling Up, Housing & Communities:

To ask Her Majesty's Government what assessment they have made of the impact of requiring local authority borrowers to obtain independent credit ratings on the management of local authority borrowing.

Local authorities borrow and invest under the Prudential Framework, and are free to borrow from any source provided it is in UK Sterling, without having to seek Government approval. Local authorities are free to pursue sources of financing that require the authority to obtain a credit rating. However, other options remain available including the Public Works Loan Board (PWLB) which, subject to conditions to prevent local authorities borrowing to invest primarily for yield, requires only that authorities confirm the borrowing is affordable.