Simple terms explainer 

Councils must decide the maximum amount they can safely spend on big projects like schools, housing, or roads. They must keep this under review to make sure they don’t overstretch their finances or borrow more than they can afford, protecting day-to-day services and long-term financial stability. This duty should ensure compliance with the CIPFA Prudential Code which sets out the statutory framework for evaluating prudence, affordability and sustainability.