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<p>Local authorities have the freedom to borrow and invest, without government consent,
provided that their borrowing is affordable. It is for each local authority to assess
the risk to its financial sustainability of any borrowing or investment activity.</p><p>My
Department has recently published a consultation on proposals to update the Statutory
Guidance on Local Authority Investments with the aim of improving local risk management
and transparency of decision making.</p><p>The consultation proposes introducing a
new requirement for every local authority to present quantitative indicators that
will allow assessment of total exposure from borrowing and investment decisions.</p>
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