An exploratory study of the utilisation of the UK’s Prudential borrowing framework

Stephen J. Bailey, Darinka Asenova, John Hood, Melina Manochin

Research output: Contribution to journalArticle


This article considers the utilisation of the UK’s Prudential Borrowing Framework (PBF) and the associated Prudential Code for local government capital finance. It finds that the increased flexibility and local freedom are at the cost of less financial certainty in terms of the risks borne by local authorities and local tax payers. The PBF seems to encourage a less formal approach to risk, being considered inevitable and handled if and when adverse risk outcomes occur.

Original languageEnglish
Pages (from-to)347-363
Number of pages17
JournalPublic Policy and Administration
Issue number4
Publication statusPublished - 1 Nov 2010



  • risk management
  • Prudential borrowing framework
  • public sector

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