Decision details

In accordance with the attached Officer Decision Record, the Director (Resources and Property) has made a decision to repay the £4m loan to Barclays, along with associated early repayment fees and other costs totalling £4,374,473 (subject to interest rate movement since the quote on 20 January 2023).  The accrued interest figure is based on a repayment date of 1 February 2023.

The Director (Resources and Property) has made the decision to repay the £4m loan to Barclays, along with an estimated early repayment premium of £307,320, accrued interest of £57,153 and fees of £10,000. 

This is subject to interest movements since the quote was obtained.  0.1% movement in interest rates is anticipated to have an estimated £100,000 impact on the early repayment premium.

The accrued interest figure is based on a repayment date of 1 February 2023.

To restructure the Council’s borrowing to a timeframe more appropriate for the economic life of the project and assets included in the Council’s Capital Finance Requirement.

There is an estimated present value saving of £561,000 over the life of this loan if it were replaced with a 20 year EIP loan at rates as per 27 January 2023.  The Council currently holds cash balances and will be looking to utilise these to repay the loan.

To keep the loan and continue to pay annual interest of £169,600 until 2078 when the £4m principal is repayable (as included in the Medium Term Financial Strategy).

This option doesn’t allow the Council to take advantage of an overall saving by utilising existing cash balances and then borrowing is required due to cash flow requirements.  A new loan will be taken out with a shorter life and on a repayment basis.