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Detail of outcome
The government has considered all the responses it received to the consultation, and at Autumn Budget 2017 confirmed that it will lend local authorities in England up to £1 billion at a new discounted interest rate of gilts + 60 basis points accessible for three years to support infrastructure projects that are high value for money. This document contains a summary of responses to the consultation and details of the Local Infrastructure Rate bidding process. Corresponding shares will be made available to local authorities in Scotland and Wales.
At Autumn Statement 2016, the government announced that it would consult on lending local authorities up to £1 billion at a discounted rate to support infrastructure projects that are high value for money. Under the government’s proposal, local authorities would be able to borrow up to £1 billion at a new Local Infrastructure Rate which would be set at gilts + 60 basis points. Loans at the new rate would be available for a period of three years, with a maximum term of 50 years.
This consultation document sets out details on the proposed rate and seeks views on its potential impact. The government welcomes responses from individuals, local authorities and representative bodies. All responses will be taken into account before the government decides whether to introduce this rate.