Published: 11th Feb 2021

The government has relaxed normal borrowing rules for four local authorities in a bid to ease their financial pressures. The Ministry of Housing, Communities and Local Government (MHCLG) announced yesterday (10 February) that it was awarding capitalisation directions to Bexley, Eastbourne, Luton and Peterborough councils to help balance their books. Capitalisation directions can be issued in special circumstances to allow local authorities to borrow in order to fund revenue costs. The London borough of Bexley received the smallest amount – a capitalisation direction which will allow it to borrow up to £3.87m, Eastbourne Borough Council got £6.8m, Peterborough City Council received £4.8m and Luton Council received one for up to £35m. Speaking in parliament yesterday, housing secretary Robert Jenrick said a ‘handful of councils face serious financial challenges’. ‘Some, it has to be said, due to very poor management, but others due to the exceptional events of the past year,’ … (To read the full article, subscribe below)