Concessionary Rates

From 1 November 2012, the Government introduced the Certainty Rate which reduced the PWLB standard interest rate by 20 basis points (0.20%) on loans from PWLB to principal local authorities who provide information as required on their plans for long-term borrowing and associated capital spending.

From 11 April 2018, the Government introduced the Local Infrastructure Rate which applies an interest rate of the gilt yield plus 60 basis points (0.60%) for lending to support nominated infrastructure projects that are high value for money.

Eligibility for access to these concessionary rates is determined by HM Treasury in accordance with the guidance set out below. The PWLB makes no assessment of whether a local authority or project qualifies for a concessionary rate but will require confirmation from borrowers that they have been granted the appropriate approval.

PWLB's lending arrangements are set out in Circular 160.

Certainty Rate

HM Treasury's letter of 7 March 2013 setting out the arrangements for access to the Certainty Rate from 1 November 2013. 

HM Treasury's list of Qualifying Local Authorities as at 1 November 2019.

Local Infrastructure Rate

HM Treasury's letter of 11 April 2018 setting out the arrangements for access to the Local Infrastructure Rate.

English, Welsh and Scottish local authorities are able to access the PWLB Local Infrastructure Rate.

Please use the following email addresses for queries regarding PWLB concessionary rates: