Councils borrowed £785m from the Public Works Loan Board during May, down from £810m last month.
The largest borrower during the month was London Borough of Newham, which took £150m to pay off Lender Option Borrower Option loans.
London Borough of Hackney borrowed £55m to lock in previously short-term borrowing.
Ian Williams, Hackney’s group director of finance, said: “This is to be used to finance the ongoing capital financing requirement as the council is building 2,000 homes, three schools and a leisure centre by 2022, with the majority of homes for social rent and shared ownership.”
