Issue - meetings

As detailed in the recommendations.

The Head of Finance introduced a report on the proposals for the setting of a prudent minimum revenue provision for the repayment of debt in 2014/15, as required under the Local Authorities (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2008 (‘the 2008 Regulations’). 

                        The Head of Finance explained that Local Authorities are required annually to set aside some of their revenue reserves as provision for the repayment of debt in respect of capital expenditure financed from borrowing or credit arrangements.  Regulation 22 of the 2008 Regulations requires Authorities each year to make an amount of Minimum Revenue Provision (MRP) which it considers to be ‘prudent’.  She outlined the options for prudent provision which were detailed in the report and the conditions for using the options.

            RESOLVED: 

That Cabinet approve and recommend to the County Council on 18 February 2014:-

• Option 1 (Regulatory Method) be used for the calculation of the minimum revenue provision in 2014/15 for all supported borrowing; this represents a continuation of the approved and adopted policy for 2013/14.

• Option 3 (Asset Life Method) be used for the calculation of the minimum revenue provision in 2014/15 for all unsupported (prudential) borrowing; this represents a continuation of the approved and adopted policy for 2013/14.