The Public Works Loan Board (PWLB) was a statutory government body that originated in 1793 and became established permanently in 1817. It is a lending facility operated by the UK Debt Management Office (DMO) on behalf of HM Treasury. It provides loans to local authorities and other specified bodies from the National Loans Fund, operating within a policy framework set by HM Treasury. This borrowing is for capital projects.

Before 2020, the Public Works Loan Commissioners provided PWLB loans. The commissioners' functions are to consider loan applications from local authorities and other prescribed bodies and, where loans are made, to collect the repayments. Following a government consultation in 2016, the Public Bodies (Abolition of Public Works Loan Commissioners) Order 2020 abolished the commissioners and transferred their statutory powers to HM Treasury.

HM Treasury is responsible for the lending policy and setting interest rates for PWLB loans. It can be contacted at pwlb@hmtreasury.gov.uk. The DMO has delegated the day-to-day lending activities, including advancing new PWLB loans and collecting repayments. The DMO’s responsibility is to administer the function within the set framework in a timely manner.

The facility lends to parish and town councils in England. Applicants must obtain borrowing approval from the Ministry of Housing, Communities & Local Government - councils approach LALC to obtain this consent.  

Lending is secured against future revenue so councils should have completed a business case and completed a process of public consultation about the project and spending that is being proposed and highlight how it will be paid for because it will usually mean that the precept will have to be raised for a number of years to pay back the loan. Interest will be charged on the loan.  Regular payments will need to be made on time and the outstanding loans will need to be shown on the AGAR Accounting Statement each year until repaid. 

Parish and town councils can find application forms and guidance notes on the DMO website. Applications should be made on form LC1. All documents must be emailed to the PWLB lending facility at pwlb@dmo.gov.uk two weeks before the loan is required. A guidance note LC2 is available regarding applying and the early repayment of loans. Please use the frequently asked questions for any additional information.

Useful links

• GOV.UK - Public Works Loan Board: Future lending terms consultation
• UK Debt Management Office
• UK Debt Management Office - Frequently asked questions
• UK Debt Management Office - Lending to parish, town and community councils
• UK Debt Management Office - Local authority lending
• UK Debt Management Office - PWLB lending