Decision details

The Cabinet Member for Finance, Performance and Core Services presented the draft Treasury Management Strategy Statement (TMSS) for 2020/21 which in accordance with the requirements of the Local Government Act 2003 set out the Council’s borrowing, investment and funding plans for the year ahead. The report was considered and endorsed by the Cabinet at its meeting on 17 February 2020.

The Cabinet Member referred to the key issues within the TMSS, including the potential effects of a range of external economic factors such as Brexit and interest rate movements, the requirements for a Capital Strategy, cash balances at financial year end and the medium-term capital finance budget position. The report also set out details of the Council’s operational boundary and authorised external borrowing limits for 2020/21.

The Cabinet Member stressed that without a successful TMSS the Council would not be able to deliver much needed investment for residents through its vision of growth and regeneration.  In that respect in response to a question the Cabinet Member explained that the Council adopts an ethical stance to its approach to investments 

Accordingly, the Assembly resolved to adopt the Treasury Management Strategy Statement for 2020/21 and, in doing so, to:

(i)  Note the current treasury position for 2020/21 and prospects for interest rates, as referred to in section 7.2 of the report;

(ii)  Approve the Annual Investment Strategy 2020/21 outlining the investments that the Council may use for the prudent management of its investment balances, as set out in Appendix 1 to the report;

(iii)  Approve the Council’s Borrowing Strategy 2020/21 to 2023/24, as set out in Appendix 2 to the report;

(iv)  Note that the Capital Strategy 2020/21, incorporating the Investment and Acquisitions Strategy, shall be updated and presented for approval in June 2020;

(v)  Approve the Capital Prudential and Treasury Indicators 2019/20 – 2023/24, as set out in Appendix 3 to the report;

(vi)  Approve the Minimum Revenue Provision Policy Statement for 2020/21, representing the Council’s policy on repayment of debt, as set out in Appendix 4 to the report;

(vii)  Approve the Operational Boundary Limit of £1.25bn and the Authorised Borrowing Limit of £1.35bn for 2020/21, representing the statutory limit determined by the Council pursuant to section 3(1) of the Local Government Act 2003, as referred to in Appendix 4 to the report; and

(viii)  Delegate authority to the Chief Operating Officer, in consultation with the Cabinet Member for Finance, Performance and Core Services, to proportionally amend the counterparty lending limits agreed within the Treasury Management Strategy Statement to consider the increase in cash from borrowing and any subsequent decrease in cash balances as payments are made to the Special Purpose Vehicle.