Agenda item

Committee is asked to:

1.    Consider and agree the proposed new Debt Rescheduling proposal for implementation during 2025/26; and

2.    Recommend that Council approve the Debt Rescheduling proposal for implementation during 2025/26.

The Committee resolved to:

1.     Consider and agree the proposed new Debt Rescheduling proposal for implementation during 2025/26 subject to the Chairs of the Business Infrastructure and Growth Committee, the Commercial Assets sub-Committee and the Corporate Policy and Resources Committee being consulted and approving before a re-financing transaction is initiated if PWLB rates movements result in the discount benefit to the Council falling below £320m; and

2.     Recommend that Council approve the Debt Rescheduling proposal for implementation during 2025/26 subject to the Chairs of the Business Infrastructure and Growth Committee, the Commercial Assets sub-Committee and the Corporate Policy and Resources Committee being consulted and approving before a re-financing transaction is initiated if PWLB rates movements result in the discount benefit to the Council falling below £320m.

The Committee considered a Debt Rescheduling proposal for implementation during 2025/26. The debt rescheduling would partially offset the impact of implementing a revised Minimum Revenue Provision policy and would assist in reducing the Council’s outstanding debt. It would also reduce the Council’s debt levels to broadly match the value of its assets.

The Committee noted that though the Council would receive a discount for the debt rescheduling, there would still be significant outstanding debt to be offset through asset rationalisation. There were a number of external factors, such as interest (gilts) rates, that would impact the debt rescheduling.

Councillor Clarke requested a recorded vote.

The Committee resolved to:

1.    Consider and agree the proposed new Debt Rescheduling proposal for implementation during 2025/26 subject to the Chairs of the Business Infrastructure and Growth Committee, the Commercial Assets sub-Committee and the Corporate Policy and Resources Committee being consulted and approving before a re-financing transaction is initiated if PWLB rates movements result in the discount benefit to the Council falling below £320m; and

2.    Recommend that Council approve the Debt Rescheduling proposal for implementation during 2025/26 subject to the Chairs of the Business Infrastructure and Growth Committee, the Commercial Assets sub-Committee and the Corporate Policy and Resources Committee being consulted and approving before a re-financing transaction is initiated if PWLB rates movements result in the discount benefit to the Council falling below £320m.