In its Treasury Management Strategy, London Borough of Hounslow has indicated that it may begin external borrowing in 2019/20.
It would be the first time the council has undertaken long-term external borrowing since 2009/10.
Clive Palfreyman, strategic director for finance and corporate services told Room 151 that as a result of significant investment within both the general fund (GF) and the housing revenue account (HRA), internal resources are forecast to decline.
“Hence at some stage in 2019/20/21 the council will need to take external borrowing, in several cases to merely support the existing borrowing that to date we have funded internally.
“Options are currently being assessed although the PWLB will of course be the benchmark default position.
As part of this the £58m the GF lent to the HRA to redeem maturing debt will be externalised”.
