Issue - meetings

Report of the Executive Director of Corporate Resources and Customer Services

Further to Minute No. 129 of the meeting of the Cabinet held on 8 February 2024, the Council considered the report of the Executive Director of Corporate Resources and Customer Services indicating that the CIPFA Prudential Code for Capital Finance in Local Authorities was introduced following the Local Government Act 2003. It detailed a number of measures / limits / parameters (Prudential Indicators) that were required to be set each financial year. The approval of these limits would provide a benchmark to measure actual performance against, to help ensure that the Council complied with relevant legislation, was acting prudently and that its capital expenditure proposals were affordable.

The following appendix was attached to the report:

·       Appendix A – Summary of Prudential Indicators.

It was moved by Councillor Atkinson, seconded by Councillor Fairclough and

RESOLVED: That

(1)      the Prudential Indicators, as detailed in the report, be approved as the basis for compliance with The Prudential Code for Capital Finance in Local Authorities;

(2)      it be noted that relevant Prudential Indicators will be revised as required and that any changes will be submitted to the Cabinet and then to the Council for approval;

(3)      it be noted that the estimates of capital expenditure may change as grant allocations are received; and

(4)      authority be delegated to the Executive Director of Corporate Resources and Customer Services in consultation with the Cabinet Member – Regulatory, Compliance and Corporate Services to manage the Authorised Limit and Operational Boundary for external debt, as detailed in section 6 of the report.

Report of the Executive Director of Corporate Resources and Customer Services

Further to Minute No. 40 of the meeting of the Overview and Scrutiny Committee (Regulatory, Compliance and Corporate Services) held on 6 February 2024, the Cabinet considered the report of the Executive Director of Corporate Resources and Customer Services indicating that the CIPFA Prudential Code for Capital Finance in Local Authorities was introduced following the Local Government Act 2003. It detailed a number of measures / limits / parameters (Prudential Indicators) that were required to be set each financial year. The approval of these limits would provide a benchmark to measure actual performance against, to help ensure that the Council complied with relevant legislation, was acting prudently and that its capital expenditure proposals were affordable.

The following appendix was attached to the report:

·       Appendix A – Summary of Prudential Indicators.

Decisions Made:

That the Council be recommended to:

(1)      approve the Prudential Indicators, as detailed in the report, as the basis for compliance with The Prudential Code for Capital Finance in Local Authorities;

(2)      note that relevant Prudential Indicators will be revised as required and that any changes will be submitted to the Cabinet and then to the Council for approval;

(3)      note that the estimates of capital expenditure may change as grant allocations are received; and

(4)      delegate authority to the Executive Director of Corporate Resources and Customer Services in consultation with the Cabinet Member – Regulatory, Compliance and Corporate Services to manage the Authorised Limit and Operational Boundary for external debt, as detailed in section 6 of the report.

Reasons for the Decisions:

To enable the Council to effectively manage its Capital Financing activities and comply with the CIPFA Prudential Code for Capital Finance in Local Authorities. The prudential indicators for the forthcoming and following years must be set before the beginning of the forthcoming year.

Alternative Options Considered and Rejected:

None

Report of the Executive Director of Corporate Resources and Customer Services

The Committee considered the report of the Executive Director of Corporate Resources and Customer Services on Prudential Indicators 2024/25.

The report indicated that the CIPFA Prudential Code for Capital Finance in Local Authorities was introduced following the Local Government Act 2003; that it detailed a number of measures / limits / parameters (Prudential Indicators) that were required to be set each financial year; and that the approval of these limits would provide a benchmark to measure actual performance against, to help ensure that the Council complied with relevant legislation, was acting prudently and that its capital expenditure proposals were affordable.

A summary of Prudential Indicators was attached as an appendix to the report.

This report would also be considered by Cabinet and Council at their meetings to be held on 8 and 29 February 2024 respectively.

The Committee was requested to consider the Prudential Indicators as the basis for compliance with the Prudential Code for Capital Finance in Local Authorities; and provide any comments to Council to be considered as part of the formal approval of the Prudential Indicators for 2024/25.

In respect of the business cases for projects that had now been approved by the Department for Levelling Up, Housing and Communities (referred to in paragraph 2.6 of the report) a Member of the Committee asked for information on what would happen if a change of government altered its funding commitments.

RESOLVED: That