Moody’s predicts sharp rise in local authority funding requirement
0UK local authorities are likely to have a funding requirement of around £5.19bn in 2018, almost double the figure from three years ago, according to ratings agency Moody’s. In a report this week, it said: “A higher reliance on locally-sourced revenue and lower government transfers will encourage some local authorities to pursue revenue growth by borrowing to fund infrastructure projects designed to stimulate their local economies and thus increase revenue from business rates.”
The ratings agency said this would lead to the funding requirement rising by £700m in both 2019 and 2020.
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