Committees

Local Council bank loans inquiry

Inquiry

On 6 July 2015 a Channel 4 Dispatches programme revealed that many Local Authorities had taken out loans from banks for which Councils were paying high interest rates and which many Councils were locked into because of expensive "break" clauses.

The report suggested that up to one fifth of Council borrowing was taken out under such Lender Option, Borrower Option (LOBO) loans for which interest rates were over 7% in some cases. Most of these loans were taken out between 2003 and 2011 when Councils believed interest rates would remain high. The Dispatches programme estimated that banks made more than £1bn in upfront profits on local authority loans.

Upcoming events

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Past events

Monday 20 July 2015
4:00pm Public
Local Council bank loans inquiry - Oral evidence 20 July 2015
The Thatcher Room, Portcullis House

Contact us

We receive a significant number of emails each day. All requests and invitations are considered but we do not respond directly to everyone. Please be aware, the committee does not look at individual cases or specific complaints.

  • Email: hclgcom@parliament.uk
  • Address: Housing, Communities and Local Government Committee, House of Commons, London, SW1A 0AA