Issue - meetings

Report of the Executive Director – Corporate Services and Commercial

Further to Minute No. 106 of the meeting of the Cabinet held on 13 February 2025, the Council considered the report of the Executive Director – Corporate Services and Commercial 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 Howard, seconded by Councillor Atkinson and

RESOLVED:

(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 – Corporate Services and Commercial, in conjunction with the Cabinet Member – 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 – Corporate Services and Commercial

Further to Minute No. 40 of the meeting of the Overview and Scrutiny Committee (Regulatory, Compliance and Corporate Services) held on 11 February 2025, the Cabinet considered the report of the Executive Director – Corporate Services and Commercial 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:

(1)      that the Council be recommended to 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)      that the Council be recommended to delegate authority to the Executive Director – Corporate Services and Commercial, in consultation with the Cabinet Member – 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 – Corporate Services and Commercial

The Committee considered the report of the Executive Director of Corporate Services and Commercial on the Prudential Indicators 2025/26.

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.

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 to provide any comments to Council for consideration as part of the formal approval of the Prudential Indicators for 2025/26.

Attached as appendix A to the report was a summary of Prudential Indicators

This report would also be considered by Cabinet and Council at their meetings to be held on 13 and 27 February 2025 respectively.

In respect of capital expenditure, a member of the Committee sought clarification on the differences in the estimated levels of annual expenditure, particularly the estimated £133.837m in 2025/26 to the estimated £52.543m in 2026/27. 

RESOLVED: That