Combined Authorities: Borrowing

We will create in law the concept of a Strategic Authority, with three levels. Foundation Strategic Authorities, Mayoral Strategic Authorities and Established Mayoral Strategic Authorities. A Strategic Authority will typically be a combined authority, combined county authority or, in London, the Greater London Authority. The powers and funding areas receive will depend on which level of Strategic Authority it is, not whether it is a combined authority or a combined county authority.

Local authorities, including combined authorities, are responsible for their own borrowing and investment decisions but must do so within the framework of legislation and guidance designed to support borrowing that is prudent, affordable and sustainable. The government has responsibility for the framework and uses information and data from a range of sources to monitor sector behaviour, including levels of borrowing and debt, to determine if changes to the framework are needed to better constrain risk. Where excessive risk from borrowing practices is identified in an individual authority, the government will take direct action if necessary.