Technical amendments about interest rate calculations for housing borrowing
The Department for Communities and Local Governement (DCLG) has made a change retrospectively so that the calculation of the consolidated interest rate for housing borrowing continues to exclude all private finance initiatives (PFIs).
This is following the introduction of international financial reporting atandards, which would have brought PFI schemes into the calculations from 1 April 2009. This could have an adverse effect on some areas of local authorities’ finances.
DCLG consulted on the change over summer 2010 and it has now been included in these documents.