20141215 Council bond agency green lit to launch - LocalGov
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Thomas Bridge (../author/ThomasBridge)
15 December 2014
Council bond
agency green lit to
launch
Plans for the UK’s first municipal
bonds have been green lit to
launch, following a show of
‘overwhelming appetite’ from
councils.
The Local Government Association
(LGA) today revealed 48 town halls –
including cities, counties and districts
from across the political spectrum have
now signed up to become investors in the
agency, which could save councils over
£1bn in borrowing costs.
2. The LGA’s Executive has now decided
there is now enough support for the
agency to move into its launch phase.
Michael Lockwood, executive director of
the LGA, said: ‘The decision to move into
the launch phase is a significant and
important step. It reflects the
overwhelming appetite among local
authorities for us to make this happen.
‘The response from councils has been
hugely positive, and the momentum
behind this exciting venture continues to
build.
‘There is no doubt about the support for
a local government owned bonds agency
that saves taxpayers money by making
borrowing cheaper. We’re now entering
the crucial final leg where we will be
looking for councils to finalise their
equity investment.
‘This company will be owned by local
government and will have the single
purpose of reducing councils' longterm
capital financing costs. The introduction
of a councilowned
competitor into the
lending market can be a great showcase
for local government's strength and
ambition while demonstrating the very
real benefits of local independence,’ he
added.
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Birmingham to cut
6000 jobs under
13 0co0mmm esnat •v 4in dgay ps alagno
PATRICKNEWMAN
— A very sick
joke on
Birmingham
especially when
in another report
the government
claim that "It …
Favorite ★
Lancaster to
explore combined
1a ucotmhmoerintty • 5p draoyps oagsoal
PATRICKNEWMAN
— The band
wagon heads
north west.
‘Offensive’ council
estate Christmas
8c acormdm wenittsh •d 7r adawysn ago
Latent — I
thought it was
quite funny and
actually correctly
targetted.
There'd be no
Labour bids to
raise local power
2o vcoemrm ferantcs k• i7n dgays ago
Simon Turner —
Well said than
man
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