Decision details

Decision Title:

SYMCA Borrowing Power for Transport Functions

Date of Decision:

18 January, 2022

Decision Maker: (Including Job Title)

Judith Badger, Strategic Director, Finance and Customer Services

Specific Delegation:  (If any)

Non-Specific

Brief Description of Decision:

In accordance with section 23(6) Local Government Act 2003 the Council consent to making of regulations that extend the existing borrowing powers of the South Yorkshire Mayoral Combined Authority to include all its functions.

Reasons for the Decision:

At present the South Yorkshire Mayoral Combined Authority (“SYMCA”) has borrowing powers limited to its transport functions. Under the Local Government Act 2003 these powers can be extended by regulation to include any function of an MCA. The making of such a regulation requires the consent of the constituent members of the MCA.

Regulations extending the borrowing power are only made if the relevant MCA has agreed a debt cap with HM Treasury. This has been agreed with HM Treasury and was approved by the SYMCA at its meeting in November 2021. This cap must be agreed annually with Treasury and is a central government control on borrowing by MCAs.

The extension of the SYMCA’s borrowing powers will allow the region to maximise the benefit of the annual devolution funding provided to the MCA by providing flexibility as to how this is deployed. The extension of the borrowing powers and agreement of the debt cap does not mean that the MCA will take on additional borrowing and any investment decisions would be taken at the SYMCA Board.

The Department for Levelling Up, Housing and Communities requires all constituent councils within the Metropolitan Combined Authority area to agree to such a proposal and has asked for a response by 20th January 2022.

Details of alternative options considered and rejected:

The only other option is to object to the extension of the powers. This would prevent the scheme from progressing and limit the options of the STMCA for the future. For this reason, this option was rejected.

Conflicts of interest declared by any Executive Member consulted by the decision maker which relates to the decision:

None

Dispensations Granted: (if any)

None

Reports or parts of reports considered

Report - South Yorkshire Mayoral Combined Authority (SYMCA) Transport Regulations