'Issue bonds' to pay for infrastructure

摘要

Councils could fund vital school and other infrastructure projects through a return of municipal bonds, according to a new report by the New Local Government Network (NLGN) think-tank. The study, Capital futures, published on 6 December, found in some circumstances that bonds could be the cheapest option to fund large-scale projects and promote growth in key areas. Almost two-thirds of councils surveyed for the report said recent rises in the Public Works Loan Board (PWLB) rate could change the way they borrowed future cash. The report also suggested that 84% of councils faced a shortfall in capital funding, following a 22% cut in the amount central government allocated for local infrastructure. 'Issuing bonds on the capital markets could enable vital investments to be saved, assuming the right market conditions,' said report author, Tom Symons.