MRP adequacy

This shows whether the council is setting aside enough money each year to actually pay off its debt over a sensible timescale. It compares the yearly amount put aside for repaying borrowing with the total debt itself. A healthy number means the debt would be cleared over a few decades, like a normal mortgage; a very low number means the council is barely chipping away at what it owes, leaving the bill to future generations.

The effective principal-repayment rate on the debt stock: annual MRP divided by the Capital Financing Requirement. Abnormally low values indicate deferred repayment (under-provisioning), a known precursor of financial distress — councils have flattered revenue budgets by minimising MRP. Compare within council classes, as prudent MRP rates vary with asset life profiles.