MD1324 GLA Group Borrowing Limits and Prudential Indicators
The Mayor is required under Section 3 (2) of the Local Government Act 2003 (the “2003 Act”) to set an “Authorised Limit” (affordable borrowing limit) for external debt, which includes direct borrowing as well as other long-term liabilities, for the GLA and each functional body. Under sections 3 (3) and 3(4) of the 2003 Act he must consult with the Assembly and each functional body before approving new limits or amending existing approvals. Alongside these limits the Mayor also approves the Prudential Indicators for the GLA Group and the associated Capital Financing Requirements as is required under the CIPFA Prudential Code.
The core GLA and functional bodies’ (the Mayor’s Office for Policing and Crime - MOPAC, the London Fire and Emergency Planning Authority – LFEPA, Transport for London – TfL and London Legacy Development Corporation - LLDC) capital programmes for 2014-15 to 2016-17 were set out in the Mayor’s capital spending plan published on 27 February 2014 which was approved under Mayoral Decision 1321.
The proposed borrowing limits and prudential indicators for 2014-15 to 2016-17 - which have regard to the capital spending plans and the final budgets agreed for each functional body and the GLA - are set out in Appendices A and B respectively. Appendix C sets out a proposed in year revision to TfL’s borrowing limits for 2013-14.
The Mayor consulted the Assembly and each functional body on the proposed borrowing limits for 2014-15 to 2016-17 as part of his consultation budget issued on 20 December 2013. The consultation on the revision to TfL’s 2013-14 limits was issued on 4 March 2014. Each functional body supports the limits and indicators being proposed for approval and the Assembly raised no specific objections to the proposed limits submitted to them for consideration as part of the 2014-15 budget consultation process.