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12
Nov 2024
'No plans' to use extended borrowing powers, says combined authority
Officials at York and North Yorkshire Combined Authority say there are “no plans” to use new borrowing powers to fund projects as it seeks ministerial approval.
Currently, the organisation only has borrowing powers for transport and police, fire and crime functions.
However, under the new measures, the combined authority would be able to borrow for other areas which would be negotiated with government.
Rachel Antonelli, head of legal and monitoring officer at the authority, told a board meeting of the combined authority that a borrowing cap of £43 million has been agreed with HM Treasury.
She added:
There are currently no plans for the combined authority to borrow in relation to its wider powers.
Senior councillors and the Labour Mayor of York and North Yorkshire, David Skaith, backed the move at a meeting on Friday. The proposal will now go to government for final consent.
Cllr Claire Douglas, Labour leader of City of York Council who sits on the combined authority board, said she welcomed the ability for the authority to borrow money, should it need to.
She said:
I’m really glad to see this coming through today, because this shows the combined authority is moving to the next stage in its evolution.
I think that’s really important for the success of the organisation.
She added that borrowing will help the authority to “participate in more projects” in the future.
Consent for the combined authority to extend its borrowing powers must be given by both North Yorkshire Council and City of York Council.
York council approved the matter at a meeting on October 10 and North Yorkshire backed the move on October 15.
The Secretary of State will now be required to approve the proposal by laying a statutory instrument before parliament.
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