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<p>The Public Works Loan Board (PWLB) is a statutory body that issues loans to local
authorities in England, Scotland and Wales from the National Loans Fund. The PWLB
is not required to collect information on the specific reasons that local authorities
borrow from it, and so it does not hold information about the amount of lending that
has been used for acquisition of commercial real estate.</p><p>Before it can advance
a loan to a local authority, the PWLB requires formal assurance from the authority
that the loan is within their borrowing powers and the relevant legislation. Local
authorities are required to have regard to the Prudential Code when they borrow from
the PWLB or from any other lender. The main objective of the Prudential Code is to
ensure, within a clear framework, that the capital investment plans of local authorities
are affordable, prudent and sustainable. Responsibility for local authority spending
and borrowing decisions lies with locally-elected council Members, who are democratically
accountable to their electorates.</p>
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