Legislation places local authorities under a duty to determine and keep under review the maximum amount it can afford to allocate to capital expenditure, and hence the amount of borrowing it will need to undertake, and requires that in doing so local authorities have regard to the Prudential Code. The key elements of the Prudential Code are that expenditure plans must be affordable, prudent and sustainable, and that associated decisions are in accordance with good professional practice and are consistent with local strategic planning, asset management planning and proper option appraisal.