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Prudential Borrowing Scheme

Volume 455: debated on Tuesday 16 January 2007

To ask the Chancellor of the Exchequer how much has been borrowed by each Department under his Prudential Borrowing Scheme; what the annual rate of interest is; and if he will make a statement. (115689)

The Prudential Borrowing regime that came into effect on 1 April 2004 introduced greater freedom for individual local authorities to borrow for capital investment. Local authorities are now free to borrow for capital purposes subject to that borrowing being assessed against local prudential indicators that determine affordable and sustainable levels of debt. The Prudential Borrowing regime does not enable departments to undertake borrowing.