Decision details

The Chartered Institute of Public Finance and Accountancy’s Treasury Management in the Public Services: Code of Practice 2017 Edition (the CIPFA Code) requires the Authority to approve a treasury management strategy before the start of each financial year.

This report fulfils the Council’s legal obligation under the Local Government Act to have regard to the CIPFA Code.

RESOLVED (unanimously):

(1)  To recommend the actions proposed within the Treasury Management Strategy Statement (Appendix 1 of the report) to February Council.

(2)  To note the Treasury Management Indicators detailed in Appendix 1 of the report and to delegate authority for updating the indicators prior to approval at Full Council on 16 February 2022 to the Chief Finance Officer and Cabinet Member for Economic Development & Resources, in light of any changes to the recommended budget as set out in the Budget Report elsewhere on the agenda for this meeting.

(3)  To note that any comments made by the Corporate Audit Committee at its meeting on 3 February 2022 will be reported to Full Council on 16 February 2022. 

The Local Government Act 2003 requires the Council to ‘have regard to’ the Prudential Code and to set Treasury Indicators for the next three years to ensure that the Council’s capital investment plans are affordable, prudent and sustainable.

The Act therefore requires the Council to set out its treasury strategy for borrowing and to prepare a Treasury Management Strategy; this sets out the Council’s policies for managing its investments and for giving priority to the security and liquidity of those investments.

The Chief Financial Officer, having consulted the Cabinet Member for Economic Development & Resources, believes that the above strategy represents an appropriate balance between risk management and cost effectiveness.  Some alternative strategies, with their financial and risk management implications, are the table below.