Measures proposed to constrain borrowing by local authorities from the Public Work Loans Board go too far and are “extreme”, according to Gary Fielding, corporate director, strategic resources and section 151 officer at North Yorkshire County Council and president of the Society of County Treasurers.
Watch the exclusive interview with Gary Fielding here
In an exclusive interview with Room151, Fielding said he understood measures announced in the March Budget to restrict borrowing from PWLB, but suggested it went too far.
He added that all councils were being “tarred with same brush” after a small number of authorities borrowed heavily from PWLB to invest in commercial property.
“I feel a bit peeved personally…We are being tarred with the same brush. If feels like a sledgehammer to crack a nut when in fact you could use a nutcracker and sort it out somewhere else.
“I’d like to have seen more rigid enforcement of the Prudential Code. But, of course, it’s a code, and Treasury doesn’t feel it goes far enough.
“The bit that feels really odd in the current consultation is if we as a council spend a £100,000 from internal resources on a commericial investment that buy-in by itself disqualifies us from taking out any PWLB loans in that year. That surely can’t be right.
“If we have a £100,000 investment and we’re funding that through revenue or reserves then surely there is a way of squaring that off that doesn’t stop us from making essential investment in community regeneration, economic development schemes, infrastructure to support a business part or housing schemes.”
Watch the full interview here.
