MD1461 GLA Group Borrowing Limits and Prudential Indicators for 2015-16 to 2017-18
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 associated capital financing requirements for the GLA group as 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 the London Legacy Development Corporation - LLDC) capital programmes for 2015-16 to 2016-17 were set out in the Mayor’s capital spending plan published on 27 February 2015 which was approved under Mayoral Decision 1452.
The proposed borrowing limits and prudential indicators for 2015-16 to 2017-18 - which have regard to the capital spending plans and the final budgets agreed for each functional body – including the new Old Oak and Park Royal Development Corporation - and the GLA - are set out in Appendices A and B respectively. Appendix C sets out a proposed revision to TfL’s and LLDC’s borrowing limits for 2014-15.
The Mayor consulted the London Assembly and each functional body on the proposed borrowing limits for 2015-16 to 2017-18 and the amendments to the LLDC’s 2014-15 limits as part of his consultation budget issued on 19 December 2014. The consultation on the revision to TfL’s 2014-15 limits was considered by the GLA Budget and Performance Committee at its meeting on 19 March 2015. 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 2015-16 budget consultation process.