Agenda item 4 - MTFS (Final) Cab 070213 , item 9. PDF 1 MB

Prudential Indicators 2013/14 – 2015/16
Appendix B
1. Background:
There is a requirement under the Local Government Act 2003 for local authorities to have regard to
CIPFA’s Prudential Code for Capital Finance in Local Authorities (the “CIPFA Prudential Code”)
when setting and reviewing their Prudential Indicators.
2. Gross Debt and the Capital Financing Requirement:
2.1 This is a key indicator of prudence. In order to ensure that over the medium term net borrowing
will only be for a capital purpose, the Council should ensure that the net external borrowing does
not, except in the short term, exceed the total of the capital financing requirement in the preceding
year plus the estimates of any additional increases to the capital financing requirement for the
current and next two financial years.
2.2 If in any of these years there is a reduction in the capital financing requirement, this reduction is
ignored in estimating the cumulative increase in the capital financing requirement which is used for
comparison with gross external debt.
2.3 The Strategic Finance Director reports that the Council had no difficulty meeting this requirement in
2012/13, nor are there any difficulties envisaged for future years. This view takes into account
current commitments, existing plans and the proposals from the approved budget.
3. Estimates of Capital Expenditure:
3.1 This indicator is set to ensure that capital expenditure remains within sustainable limits and, in
particular, to consider the impact on Council Tax. The table below shows the estimates of capital
expenditure.
2012/13
Approved
£m
2012/13
Revised
£m
2013/14
Estimate
£m
2014/15
Estimate
£m
2015/16
Estimate
£m
Capital Expenditure 75.845 60.472 78.619 58.750 46.733
3.2 Capital expenditure is expected to be financed as follows:
Capital Financing 2012/13
Approved
£m
2012/13
Revised
£m
2013/14
Estimate
£m
2014/15
Estimate
£m
2015/16
Estimate
£m
Capital receipts 0.000 0.100 4.435 3.087 0.000
Government Grants 48.761 40.364 58.138 47.095 38.513
Revenue contributions 3.500 14.593 7.448 7.908 8.198
Capital Contributions 8.279 5.415 8.598 0.660 0.022
Capital Reserve 13.902 0.000 0.000 0.000 0.000
Total Financing 74.442 60.472 78.619 58.750 46.733
Supported borrowing 0.000 0.000 0.000 0.000 0.000
Unsupported borrowing 1.403 0.000 0.000 0.000 0.000
Total Funding 1.403 0.000 0.000 0.000 0.000
Total Financing and
Funding
75.845 60.472 78.619 58.750 46.733
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