Written question asked by Jim McMahon (Labour) on Wednesday, 17 January 2024, in the House of Commons. It was due for an answer on Friday, 19 January 2024. It was answered by Simon Hoare (Conservative) on Thursday, 25 January 2024 on behalf of the Department for Levelling Up, Housing and Communities.

Local Government: Debts

Question: To ask the Secretary of State for Levelling Up, Housing and Communities, what assessment his Department has made of the impact of the level of interest rates on local authority debt repayments.

Answer: Councils are ultimately responsible for their own finances, including decisions on the timing of borrowing, and the type and length of loan to manage interest rate risks. The effect of interest rates will vary significantly between councils depending on individual circumstances and financing needs, and the government does not collect this level of data. Under the Prudential Framework, authorities must, however, ensure all debt is affordable and capital investments are prudent and sustainable.

Secondary information