Issue - meetings

To agree the Prudential Indicators and Minimum Revenue Provision (MRP) Policy before the start of the 2010/11 financial year.

(Report attached)

RECOMMENDED that

1)         the Prudential Indicators as set out in the report be approved; and

2)         the Minimum Revenue Provision Policy for 2010/11 be based on the estimated life of the assets financed from borrowing.

Members considered proposed limits to be set under the Prudential Code for borrowing which the Council was required to agree before the start of the 2010/11 financial year. Members’ approval was also being sought for the Minimum Revenue Provision (MRP) Policy for 2010/11.

The meeting was informed that the Council was currently a net payer of interest which was a reflection on the present spending on the Council’s Capital Programme. It was noted that the prevailing financial conditions could result in restrictions on borrowing and restrictions on future capital spending. In response to concern raised at the possible impact of constraints on future borrowing, Officers clarified that local authorities had the discretion to borrow in anticipation of capital schemes, but the implications for the Council’s existing base budgets were highlighted. It was acknowledged that this was an issue that might be considered as an issue going forward.

RECOMMENDED that

1)         the Prudential Indicators as set out in the report be approved; and

2)         the Minimum Revenue Provision Policy for 2010/11 be based on the estimated life of the assets financed from borrowing.