Decision details

It was resolved to recommend to the Full Council that it approve the following MRP changes for the current financial year 2022/23 and beyond –

·                To note the report in Appendix 1 and Link Asset Group’s report attached in Appendix 3 on the Minimum Revenue Provision (MRP) options.

·                To change the Housing Revenue Account (HRA) MRP charge on   supported borrowing CFR from 2% of the HRA capital financing requirement (CFR) to the Asset Life – Annuity approach for 60 years at the Council’s average interest rate payable on its loans (Option 1ch in Table 2 in Appendix 1 to the report) from 1 April, 2022.

·                To change the HRA MRP on unsupported borrowing CFR from 2% of the HRA CFR to the Asset Life – Annuity approach for 60 years at the Council’s average interest rate on its loans (Option 2ch in Table 2 in Appendix 1) from 1 April, 2022.

·                To change the Council Fund MRP on supported borrowing CFR from the Asset Life – Equal Instalment method to the Asset Life – Annuity approach for 46 years at the Council’s average interest rate payable on its loans (Option 3ch in Table 2 in Appendix 1) from 1 April, 2022.

·                To change the Council Fund MRP on unsupported borrowing CFR from the Asset Life – Equal Instalment approach to the Asset Life – Annuity method for 27.5 years at the Council’s average interest rate payable on its loans from 1 April, 2022.

·                To approve the revised MRP Policy Statement for 2022/23 and beyond in Appendix 2 of the report which is based on the options in the recommendations in the bullet points above.