CIPFA wants ministers to simplify the statutory capital controls framework for councils. ...
CIPFA wants ministers to simplify the statutory capital controls framework for councils.
A new institute report, Premiums for the early repayment of Public Works Loan Board loans, gives advice to councils that use the provision of credit liabilities when repaying loans.
Most council debt is with the PWLB. If it is repaid early, and current interest rates are lower than the interest being paid on the loan, a premium is payable to the board on top of the original amount borrowed.
The DETR asked CIPFA to look at the application of PCL for the repayment required by the PWLB when loans are repaid early. The study found that the use of PCL in this way raises a number of accounting and treasury management issues - not least whether it is legal to do so in certain circumstances.