In accordance with paragraph 1(b) of Schedule 13 to the Local Government Act 1972, a parish or town council may borrow money.  Before a council in England can borrow a sum of money, it must first apply for a sanction to borrow from the Ministry of Housing, Communities and Local Government (MHCLG).

Proof of borrowing approval is a mandatory requirement and evidence of the approval may be required at audit. Please contact the WALC office for an application form and guidance.

In England there is no national limit on the annual amount of borrowing available. Applications for borrowing approval from councils in Wiltshire and Swindon are administered by Wiltshire Association of Local Councils. WALC will check applications against the MHCLG criteria and recommend them to MHCLG.  Where applications do not meet the criteria, WALC will inform councils.

Councils may borrow money from any approved source. The Public Works Loan Board provides competitive loans for local councils or a bank could be used. Loans may also be taken out from individuals or private sector organisations.