Public Works Loan Board: Future lending terms

 

1. Do you use the PWLB to support treasury management, for example by refinancing existing debt, or to externalise internal borrowing?

 

2. How far do the lending terms of the PWLB affect the terms offered by private lenders?

 

3. Are there any other effects or uses of the PWLB beyond those described here?

 

4. Do you think the proposal described in paragraphs 1.24 to 1.28 would be effective in achieving the aim set out in paragraph 1.22?

 

5. Do you agree with the conclusion in paragraph 1.26 that LAs finance their capital requirement in the round, and that it is not therefore possible to meaningfully link PWLB borrowing to specific spending?

 

6. If you answered ‘no’ to question 5, do you have an alternative suggestion?

 

7. Do you agree that the approach set out in paragraph 1.27 is a reasonable approach to the situation in which an LA borrowed from the PWLB and was subsequently found to have pursued a debt-for-yield scheme despite the assurances given through the application process? If not, how would you recommend that the government addresses this issue?

 

8. Do you think that the proposal set out in paragraphs 1.24 to 1.28 would limit your ability to effectively manage your existing investment portfolio in a year in which you still wish to access PWLB borrowing for ‘accepted’ purposes?

 

9. Do you have a view on when in the calendar or financial year this new system should be introduced?

 

10. Do you agree with the proposal in paragraph 1.29 that these new lending terms should apply uniformly to larger LAs in England, Scotland, and Wales?

 

11. Do you agree with the assessment in paragraph 1.30 that it is not necessary to change the arrangement for smaller authorities?

 

12. The government proposes that you submit your plans for the year or years ahead. Over what period could you provide meaningful plans?

 

13. This proposal would also require a short description of the projects in each spending area as set out in paragraph 1.34 to improve the government’s understanding of how the PWLB is used, but without putting an unreasonable reporting requirement on LAs. What level of granularity would give this understanding? For example: projects covering 75% of spending? Anything over £5 million per year? etc

 

14. Do you agree with the approach in paragraph 1.38 that the section 151 officer of the applicant authority should assess if the capital plan is eligible for PWLB access, or would it be more suitable for another body to do this?

 

15. Would you as an s151 officer feel confident categorising spending into the categories proposed here? If not, what would you propose instead?

 

16. Would these proposals affect the ability of LAs to pursue innovative financing schemes in service delivery, housing, or regeneration?

 

17. Are there specific examples of out-of-area capital spending for service delivery, housing, or regeneration that support policy aims?

 

18. Would these proposals affect your ability to refinance existing debt?

 

19. Would these proposals affect your ability to undertake normal treasury management strategies? If so, how, and how might this be avoided?

 

20. Do you have any views about the implications of these proposed changes for people with protected characteristics as defined in section 149 of the Equality Act 2010? What evidence do you have on these matters?

 

21. Is there anything that could be done to mitigate any impact identified?

 

22. Is there anything else you would like to add on this issue?

 

23. Why did MRP fall as debt rose? Was the 2018-19 increase a one-off, or do you expect MRP to continue growing?

 

24. Why do you think the average loan length is increasing?

 

25. What impact would changes to the maximum available length of loan, and/or the existing offer of repayment methods, have on your finances?

 

26. What are the benefits of the existing two-day turnaround time for PWLB loans?

 

27. What would the impact be of increasing the time between loan application and advance – for example, to three or five working days?

 

28. How long could the turnaround time be for a PWLB loan before the PWLB becomes less attractive?

 

29. Do you have any PWLB debt that would you like to repay early? If so, what is the total value of this debt and at what price/discount would this be viable?

 

30. How much PWLB debt would you transfer to other LAs if you could?

 

31. If novation were permitted, under what circumstances would you take on debt from another LA rather than taking on new borrowing from the PWLB or another source?

 

32. Are there any other barriers to discharging unwanted PWLB debt?

 

33. Should HM Treasury introduce a process by which borrowing by an individual authority might be slowed or stopped without affecting PWLB access or terms for other LAs?

 

34. Under what circumstances should this process be applied?

 

35. Do you use DMADF currently, and if so, why?

 

36. What would make you increase your use of DMADF?

 

37. Does your LA actively consider borrowing from alternative lenders to finance capital investment?

 

38. If you answered ‘yes’ to question 37, what are the reasons that would inform your choice to borrow from other providers?

 

39. What are the main reasons that you borrow from other LAs and how do these reasons differ to borrowing from the PWLB?

 

40. Following this, is there a case for changing the name of the PWLB?

 

41. What is the name of your organisation? *