Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, what assessment he has made regarding the potential implications for his policies of revenue-backed lending arrangements for Best Value assessments.

Finance arrangements are considered as part of the Department’s holistic assessment of a local authority’s delivery of Best Value, as set out in the statutory guidance on Best Value standards and intervention. In making borrowing decisions, authorities must comply with legislation and have regard to statutory guidance to ensure that all borrowing is prudent, affordable and sustainable, and in compliance with their Best Value Duty.

Under the current system, local authorities have wide freedoms to borrow and invest as they are best placed to determine their own capital strategies to meet the needs of local residents. Under statute, all borrowing is secured indifferently on the authority's revenues.