Issue - meetings

This report fulfils the Council’s legal obligation under the Local Government Act 2003 to have regard to both the CIPFA Code and the CLG Guidance in setting out its Treasury Strategy for borrowing, and preparing an Annual Investment Strategy, setting out the Council’s policies for managing its investments.

The Council considered a report presenting the Treasury Strategy for borrowing and an Annual Investment Strategy setting out the Council’s policies for managing its investments.

On a motion from Councillor Charles Gerrish, seconded by Councillor Paul May, it was

RESOLVED

1.  To approve the actions proposed within the Treasury Management Strategy Statement (Appendix 1 of the report); and

2.  To approve the Investment Strategy as detailed in Appendix 2 of the report.

[Note; The above motion was approved with 45 Councillors voting in favour, 11 against and 2 abstentions.]

In February 2012, the Council adopted the revised CIPFA Treasury Management in Public services Code of Practice 2011 Edition, which requires the Council to approve a Treasury Management Strategy before the start of each financial year and for this to be scrutinised by an individual / group of individuals or committee.

In addition, the Department for Communities and Local Government (CLG) issued revised guidance on local authority investments in March 2010 that requires the Council to approve an investment strategy before the start of each financial year.

This report fulfils the Council’s legal obligation under the Local Government Act 2003 to have regard to both the CIPFA Code and the CLG Guidance.

This report is due to be scrutinised by the Corporate Audit Committee at the 4th February 2016 meeting, following which any recommendations will be reported back verbally as an update to this report.

Councillor Charles Gerrish said that this report fulfils the Council’s legal obligation under the Local Government Act 2003 to have regard to both the CIPFA Code and the CLG Guidance. This report had been scrutinised by the Corporate Audit Committee at the 4th February 2016 meeting. Councillor Gerrish assured Councillor Furse that the income generated from the bulk of the borrowing would exceed the cost of borrowing.  This wouldn’t be a ‘leap in the dark’ and it would generate income for the Council.

Councillor Patrick Anketell-Jones seconded the motion by saying that this strategy had set out the Council’s policies for managing its investments and for giving priority to the security and liquidity of those investments.  The Council’s borrowing strategy of using internal resources or borrowing short term would be kept under review taking account of future interest rate forecasts.

RESOLVED (unanimously) that the Cabinet agreed to:

1)  Recommend the actions proposed within the Treasury Management Strategy Statement to February Council for approval.

2)  Recommend the Investment Strategy to February Council for approval.

3)  Recommend to February Council for approval that decisions to borrow from the Local Government Association (LGA) Bond Agency are delegated to the Chief Finance Officer in consultation with the Cabinet Member for Finance & Efficiency.

4)  Note the Treasury Management Indicators and delegate authority for updating the indicators prior to approval at Full Council on 16th February 2016 to the Chief Finance Officer and Cabinet Member for Finance & Efficiency, in light of any changes to the recommended budget as set out in the Budget Report elsewhere on the agenda for this meeting.