The consultations follow previous reviews of the codes’ provisions with ongoing concerns over local authority commercial investments.

The prudential code is a professional code of practice that aims to ensure local authorities’ financial plans are affordable, prudent, and sustainable while the treasury management code sits alongside to provide a framework for risk management.

The revisions to the codes are designed to put safeguards in place so that local government bodies carefully review any investment in property and do not take risks with investments and ensure a greater focus on climate and environmental, social, and governance (ESG) risks when making financial decisions.