Agenda Item No. 11(b)
THE VALE OF GLAMORGAN COUNCIL
COUNCIL MEETING: 14 DECEMBER 2016
REFERENCE FROM CABINET: 28 NOVEMBER 2016
C3369 LOCAL AVERAGE INTEREST RATE (L) (SCRUTINY COMMITTEE – CORPORATE PERFORMANCE AND RESOURCES) -
Schedule 16 of the Housing Act 1985 specified how local authorities must set interest rates on mortgages arranged since 3 October, 1980. The rate of interest currently charged on Council mortgages was 5.09%. The local average interest rate had been calculated at 5.07%. The Standard National Rate of interest was 3.13%.
This was a matter for Executive decision
Cabinet, having considered the report and all the issues and implications contained therein
(1) T H A T the Authority declare a local average rate of interest on all new loans of 5.07% from 1 November, 2016 and that the rate of interest on all existing variable housing loans including the sale of Council dwellings be reduced from 5.09% to 5.07% with effect from 1 December, 2016.
(2) T H A T delegated authority be granted to the Head of Finance in consultation with the Cabinet Member for Resources and Inward Investment to set the rate when the rate changes by less than 0.1%.
(3) T H A Tthe use of article 14.14 of the Council's Constitution (urgent decision procedure) be authorised to amend the rate within the timeframe as outlined in resolution 1 above.
Reasons for decisions
(1&2) To ensure that the interest rate was recalculated in accordance with statutory requirements.
(3) To ensure that the change in interest rate could be actioned to meet the proposed deadlines.