Prudential borrowing is the set of rules governing
local authority borrowing in the
UK. Under prudential borrowing, the amount of
debt
Debt is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor. Debt is a deferred payment, or series of payments, which differentiates it from an immediate purchase. The ...
and other
liabilities most
local authorities
Local government is a generic term for the lowest tiers of public administration within a particular sovereign state. This particular usage of the word government refers specifically to a level of administration that is both geographically-loca ...
can incur is no longer capped by an upper limit. Instead borrowing must conform to the
Prudential Code
Prudential may refer to:
Companies
* Prudential plc, a British multinational insurance company
** Prudential BSN Takaful, a Malaysian takaful company
** ICICI Prudential Life Insurance, an Indian company
* Prudential Financial, an American financ ...
which (among other things) requires that borrowing be affordable and prudential.
Local government in the United Kingdom
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