PWLB 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.

From 15 June 2023, the government introduced the HRA rate which applies an interest rate of the gilt yield plus 40 basis points (0.40%) which is equivalent to the PWLB standard rate less 60 basis points (0.60%). This rate is solely intended for use in Housing Revenue Accounts and primarily for new housing delivery.

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.


Certainty Rate


Principal local authorities previously could qualify for the Certainty Rate by submitting a Certainty Rate return. Since 26 November 2020, principal local authorities have been required to submit a Certainty Rate return, including a high-level description of their capital spending and financing plans for the following three years, as a condition of accessing the PWLB.

As a result, the Certainty Rate is now the default rate that principal local authorities borrow at. The DMO will no longer publish a list of local authorities that qualify for the Certainty Rate.


Local Infrastructure Rate


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.


HRA Rate


HM Treasury introduced a new HRA rate for PWLB lending on 15 June 2023, solely for the use in the HRA and intended  primarily for new housing delivery.

The Autumn Statement confirmed that the availability of this rate has now been extended to end June 2025




Contact Details


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