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Business News: Issue 242 3 May 2012

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funding, local government

Prudential interest borrowing rates cut

The government has reduced the cost of prudential borrowing for councils that provide improved information on their capital spending plans.

The Chancellor George Osborne announced that in 2012/13 the government would provide a 0.2% discount on loans from the Public Works Loan Board under the prudential borrowing regime for councils that are transparent about their borrowing and spending plans.

The government will also “consider the potential for an independent body to facilitate the...

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