Cabinet to discuss a proposed change to finance policy

Hastings Borough Council's Cabinet is due to discuss a change to the Minimum Revenue Provision (MRP) policy at its next meeting on Monday 30 January.

Minimum Revenue Provision (MRP) is the charge to revenue made in respect of paying off the principal sum of the borrowing undertaken to finance the capital programme.

The proposal to change the method the council uses for calculating MRP will reduce costs and help preserve vital local services when budgets are under pressure. If approved by Cabinet, the proposal will go to Full Council for discussion on Wednesday 8 February.

The proposed changes would align the council's policy to the Chartered Institute of Public Finance and Accountancy best practice, and also be fairer to council taxpayers as each generation pays equally for the assets they benefit from.

Cllr Simon Willis, lead councillor for finance, said: "These proposed changes make good financial sense and will help us at a time of very tight budgets. We can make savings in the present and also make increased payments when we are able to reduce the financial pressure in the future."

The council would be able to make additional payments if finances allowed, these could be used to offset MRP charges in future years.

The full report is available to read on the council's website and the Cabinet meeting will be available to watch from 6pm on Monday 30 January.