Local authorities can already finance expenditure from projected future efficiency savings provided they are satisfied the expenditure falls within the terms of the Prudential system. This allows local authorities to borrow for any capital expenditure without Government consent, provided that they can afford the borrowing costs.
The following tables give the amounts and proportions of my Department’s funding to local authorities in 2008-09 and 2009-10.
All figures (£ million) Financial years Communities and local government DEL Of which: funding to local authorities Proportion of funding to local authorities (percentage) 2008-09 11,412 5,339 47 2009-10 12,895 5,726 44 Note: Figures exclude administration costs
All figures (£ million) Financial years Local government DEL Of which: funding to local authorities Proportion of funding to local authorities (percentage) 2008-09 24,913 24,568 99 2009-10 25,737 25,506 99 Note: Proportion of funding allocated to local authorities in 2008-09 are outturn figures for both main and local government departmental expenditure limits.