Crippling bank loans to local councils judged illegitimate by critics

Workers’ co-op Research for Action calls for suspension of repayments on lobo loans worth £15bnRepayments on a crippling set of council loans worth £15bn – which left one local authority spending more on servicing its debt than it earned in council tax – should be suspended immediately, according to a report published on Tuesday.The cooperative Research For Action, which investigates public finances and corporate power, has analysed bank loans, with an estimated total value of £15bn, that were taken out by 240 local authorities, and concluded that these loans were illegitimate. It has called for the suspension of repayments on the loans until their legality can be determined. Continue reading…

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