Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the oral contribution by the Minister of State for Local Government and Homelessness on 23 February 2026, whether the removal of the pay-day loan premium will apply to councils not currently in receipt of Exceptional Financial Support.
Answered by Alison McGovern
The previous government made a sustained recovery for councils even harder by charging a premium on borrowing for councils needing Exceptional Financial Support. In December 2024, the government confirmed that the additional 1% premium on Public Works Loan Board (PWLB) borrowing would not apply to any council borrowing or refinancing going forward.
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