The Mayor is required under Section 3 (2) of the Local Government Act 2003 (the “2003 Act”) to set an “Authorised Limit” (affordable borrowing limit) for external debt, which includes direct borrowing as well as other long-term liabilities, for the GLA and each functional body. Alongside these limits the Mayor also approves the Prudential Indicators for the GLA Group and the associated Capital Financing Requirements as is required under the CIPFA Prudential Code.