Local council debt – LOBO scandal
“Local Authorities are borrowing from private banks instead of the Public Works Loan Board (PWLB) even if it is more expensive to do so. Central Government is encouraging this, as it pushes debt off their balance sheet. As a result tax payer money is being unnecessarily wasted, and profits from lending are going to banks rather than recirculating in the public sector.” – Debt Resistance UK.
Labour will invest in local councils to reverse the funding cuts being imposed by central government.