Councillor Lewis Answers Our Questions: 3
- The report does not explain any details of the prudential borrowing scheme for the proposed £12.3m. Has this loan been requested? when? what will the requirements be to request a loan? business case?
Councillior Lewis replied:
The use of prudential borrowing to fund capital expenditure within the authority is well established. Prudential Borrowing refers to the Council’s powers to borrow money for any capital expenditure. The Market’s project is only one of many schemes within the Council’s Capital programme that is funded by Prudential Borrowing. Having established the need to fund capital expenditure and appropriate approval is secured for the scheme (in this instance from Executive Board), it is then the Council’s Treasury Management Strategy that determines when it is necessary to acquire funds to support the capital programme. In other words, the money will be drawn down incrementally as it is required.