There is good news and bad news from last week's survey of the local government sector by one of the world's best known credit ratings agencies. The good news from the report by Moody's is that the sector has 'a high credit quality' and is therefore a good risk for lenders. The bad news for localists is that the reason for this positive verdict is centralism, or more precisely, central government's willingness to intervene when financial problems among councils arise. How does Moody's know this? It cites recent intervention in financially troubled Northamptonshire CC as proof.
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