“This 1 per cent PWLB rate increase could cost councils an extra £70 million a year for borrowing to be undertaken in the next year."
Responding to the 1 per cent interest rate rise announced by the Public Works Loans Board, a spokesperson for the Local Government Association said:
“This 1 per cent PWLB rate increase could cost councils an extra £70 million a year for borrowing to be undertaken in the next year.
“It presents a real risk that capital schemes, including vital council house building projects, will cease to be affordable and may have to be cancelled as a result.”