Purpose

To
seek agreement under delegated powers to repay the loan early to
take advantage of early repayment discount
 

Content

Resolved
 
That, in accordance with the Constitution Part
19 (4.1.16) in exercising the delegation afforded to him and in
consultation with the Portfolio Holder for Finance, Property and
Regeneration the S151 Officer agrees to:
 
(1)         
Arrange the early repayment of the £25m PWLB
loan to take advantage of the discount premium
available.

 
(2)         
Arrange replacement financing in line with the
council’s current borrowing strategy.
 
(3)         
Recommend to the Executive to transfer the annual
amortised discount for 2025/26 and 2026/27 to reserves.

Reasons for the decision

Early repayment would benefit the council by
reducing the total external loan balance. The delegation to take
the decision is in accordance with the Constitution under the
powers afforded to the Chief Finance Officer of the council.
 

Alternative options considered

Not to agree the early repayment. This is not recommended
as early repayment will benefit the council by reducing the total
external loan balance.