While the response confirms that the prudential code forbids Local Authorities from borrowing in advance of need solely to invest in profit-making activities, it allows that there: 'may be cases where local authorities may choose to borrow in advance of need to achieve value for money in its Treasury Management activities.' The decision has been praised by commentators for falling short of a ban on investments outside of the Local Area and is good news for Local Authorities seeking to invest in property. The full text of the response can be found here and DJB's original article on the topic can be found here.