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Interest rate risk as authorities veer towards short-term borrowing

The trend towards short-term borrowing could leave local authorities vulnerable to greater interest rate risk, Arlingclose director David Blake has warned.

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According to the latest government data, short-term loans from local government have risen 5% year on year to reach £11.4bn. Blake told the latest

Reputational risk and a struggle to access longer-term money are some of the main obstacles to using the local-to-local lending market, according to the investment panel at LATIF 2026.

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