Draft Borrowing and Capital Spending Plan 2004/05 To 2009/10: Draft Submission

Report: 4
Date: 11 October 2004
By: Treasurer and Commissioner

Summary

This report provides information on the proposed five-year borrowing and capital spending plan 2005/06 to 2009/10. Members are requested to consider the plan before referring it to the full Authority. The plan represents work in progress and is required as part of the overall budget submission to the Mayor and Greater London Authority.

Detailed information is provided on the establishment of a capital strategy, expected funding available to finance capital projects and the proposed use of unsupported borrowing permissible through flexibilities provided under the Prudential Code. Verification of available funding will be reported in detail to the MPA Finance Committee in early 2005 once details of the capital settlement are announced by the Home Office.

A. Recommendation

The Committee is invited to:

1. Consider the indicative borrowing and capital spending plan 2005/06 to 2009/10 before referral to the full Authority (Appendix 1), recognising that further work is to be undertaken in clarifying expenditure proposals; and
2. Note that final approval of the detailed five-year capital programme 2005/06 to 2009/10 will be sought from the Committee in early 2005 following announcement of the capital settlement by the Home Office.

B. Supporting information

Introduction

1. The Mayor’s budget guidance for the preparation of the borrowing and capital expenditure plan 2005/06 to 2009/10 was published on 30 May 2004. The draft capital spending plan follows this guidance and is required as part of the MPA Budget Submission to the Mayor. The submission is required to be forwarded by 8 November 2004. In order to meet this deadline Finance Committee members are asked to consider the draft plan at Appendix 1 in light of its recent decision to establish a capital strategy and the requirement to show funding availability whilst delivering projects that are prioritised to meet key operational objectives.

2. Further work is required in verify expenditure proposals for the final year of the five year spending plan and in ensuring that the revenue consequences of capital investment are fully captured for inclusion within the revenue budget submission and the medium term financial plan.

3. The borrowing and capital spending plan 2005/06 to 2009/10 will be reviewed in the light of the 2005/06 capital settlement for police authorities. This is expected to be announced by the Home Office in early 2005. Any urgent policing priorities that emerge in the interim period will also be taken into account. The Finance Committee will be asked to give final approval to the borrowing and spending plan 2005/06 to 2009/10 prior to the commencement of the new financial year.

C. Equality and diversity implications

There are no specific equality and diversity implications arising from this report. Any implications will be addressed as specific programmes and schemes are put forward for authorisation.

D. Financial implications

Financial implications are discussed at Appendix 1.

E. Background papers

Corporate Finance – Reports on Medium Term Capital Programme 2004/05 – 2008/09

F. Contact details

Report author: Sharon Burd – Director of Finance Services

For information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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