Government pledges to modernise lending to councils

The government has maintained that transferring the powers would increase efficiency of lending to local government and create greater accountability to ministers.

Harriett Baldwin, economic secretary to the Treasury, said: “As local government continues to gain further decision-making powers, it’s right that we consider whether the governance, composition and status of the PWLB is fit for the twenty-first century.

“The reforms set out in today’s consultation will create a more streamlined and up-to-date governance arrangement. The government’s preferred option to transfer the functions of the Public Works Loan Board to HM Treasury, will secure greater accountability to ministers and enhance the efficiency and effectiveness of central government lending to local authorities.”