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.
From 12 March 2020, the government introduced the Housing Revenue Account Certainty Rate which applies an interest rate of the gilt yield plus 80 basis points (0.80%) and, the Housing Revenue Account Standard Rate which applies an interest rate of the gilt yield plus 100 basis points (1.0%) for lending to support social housing projects in England, Scotland and Wales.
Eligibility for access to these concessionary rates is determined by HM Treasury in accordance with the guidance set out below. During the loan application process the DMO will require confirmation from borrowers that they have been granted the appropriate approval.
HM Treasury's letter of 7 March 2013 setting out the arrangements for access to the Certainty Rate from 1 November 2013. HM Treasury also provides a list of Qualifying Local Authorities as at 1 November 2019.
HM Treasury's letter of 1 April 2020 sets out the arrangements for the third round of access to the Local Infrastructure Rate by English local authorities. The arrangements for previous rounds of the Local Infrastructure Rate are set out in HM Treasury's letter of 11 April 2018.
HM Treasury's letter of 12 March 2020 sets out the arrangements for access to the concessionary rates. The list of qualifying authorities for the Certainty rate is detailed above as at 1 November 2019.
Please use the following email addresses for queries regarding PWLB concessionary rates: