Changes to the capital framework: Minimum Revenue Provision
Applies to England
Read the full outcome
Detail of outcome
바카라 사이트�바카라 사이트婽he government is committed to ensuring that the local government capital system is sufficiently robust at constraining risk while still supporting local investment.
As part of its broader strategy to strengthen the capital system, the Department for Levelling Up, Housing and Communities has conducted a series of consultations on amendments to the Local Authorities (Capital Finance and Accounting) (England) Regulations 2003 and the statutory guidance that sets out local authorities바카라 사이트� statutory duty to set aside money each year for the repayment of debt, known as Minimum Revenue Provision (바카라 사이트淢RP바카라 사이트�).
This document sets out the government바카라 사이트檚 response to the third and final consultation, and details the amendments made to the regulations and guidance. 바카라 사이트�
Original consultation
Consultation description
바카라 사이트婰ocal authorities can freely borrow and invest under legislation and guidance known as the Prudential Framework.
Notwithstanding these freedoms, authorities must make sure borrowing is affordable. Where capital expenditure is financed by borrowing, authorities have a statutory duty to set aside revenue funds to repay the principle of the debt; this is known as Minimum Revenue Provision (MRP).
The government has identified that some authorities are not sufficiently complying with this duty and is proposing changes to regulations to make sure that practices are prudent and consistent across the sector.
Documents
Updates to this page
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Added government response to the consultation.
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First published.