SDLP leader and Foyle MP Colum Eastwood
The Foyle MP proposed a change to lending rules for local government to Chancellor Rishi Sunak which would allow councils to refinance historic debt to take advantage of low interest rates without incurring prohibitive early repayment penalties.
Said Mr Eastwood: “The COVID-19 crisis has had a profound impact on our economy and the delivery of basic public services.
“Throughout the pandemic, however, local government has stepped up to provide help and support to people, communities and businesses in their moments of need.
“The provision of that support, and other core services has been threatened by the instability in local government finances caused by the contraction in the economy.
“Without urgent intervention, local government is facing a crisis that could result in rates increases, service reductions or compulsory redundancies.
“None of these are acceptable outcomes.
“I have contacted the Chancellor Rishi Sunak with a proposal to alter lending rules for local government that would allow councils to take advantage of low interest rates to refinance historic debt.
“Currently, many councils face prohibitively large early repayment penalties that make refinancing inaccessible.
“Changing these rules for a discrete period, or abolishing them entirely, will place local government on a more sustainable footing in the longer term and protect ratepayers.”
