GLA Borrowing

Meeting: 
MQT on 2011-12-14
Session date: 
December 14, 2011
Reference: 
2011/4105
Question By: 
Richard Barnbrook
Organisation: 
British National Party
Asked Of: 
The Mayor

Question

What are the current and future borrowing requirements for all the GLA functional bodies and are the interest charges fixed or variable?

Where applicable will any increase in borrowing costs to any GLA functional body affect their credit rating?

Answer

Answer for GLA Borrowing

Answer for GLA Borrowing

Answered By: 
The Mayor

The GLA group's current and forecast borrowing positions are detailed below.

Borrowing Requirement

2011-12

£m

2012-13

£m

Metropolitan Police Authority

338

410

London Fire & Emergency Planning Authority

135

139

LDA (transfers to GLA from 12-13)

349

TBC

Greater London Authority (Crossrail)

1,500

2,200

Transport for London

6,908

7,353

OPLC

0

0

Total

9,230

9,553

The extent of the GLA's non Crossrail borrowing requirement (incorporating borrowing inherited from the LDA) is dependent on the final settlement with Government and will be reported shortly after the settlement is concluded.

The majority of the GLA Group borrowing is fixed rate at present, with only a small amount of variable rate borrowing, reflecting a prudent emphasis on certainty of costs.

Only the GLA and TfL hold credit ratings. Borrowing costs are relevant, in that interest payable to net operating income is a key ratio used to assess credit strength, however precise impact is difficult to estimate given the subjective overlay of perceived government support.