Decision details

The Corporate Director of Finance and Resources presented the Council’s draft Treasury Management Strategy Statement for 2012/13 which set out the proposed borrowing limit for the year and a range of other aspects aimed at ensuring that the Council had prudent and robust arrangements in place to meet all of its financial commitments and responsibilities, in line with the requirements of Section 15(1) of the Local Government Act 2003.

The Corporate Director commented on the Investment Strategy and Borrowing Strategy which were the key elements of the overall Strategy and advised that the particular changes proposed in these respects would be kept under constant review in the light of the considerable uncertainty at the present time in the global economy.

Cabinet agreed to recommend the Assembly to approve the Treasury Management Strategy Statement for 2012/13 at Appendix 1 to the report and, in doing so:

  (i)  The current treasury position for 2011/12 and prospects for interest rates;

  (ii)  The revised Authorised Borrowing Limit (General Fund and HRA) of £465m for 2011/12, which included £265m for the HRA self-financing debt settlement and £55m estimated borrowing to finance the 2011/12 Capital Programme;

 (iii)  The Borrowing Strategy, Debt Rescheduling Strategy and Policy on Borrowing in Advance of Need for 2012/13, including the Housing Reform and effects on treasury management of Housing Revenue Account reform;

 (iv)  The Minimum Revenue Policy Statement for 2012/13 setting out the Council’s policy on repayment of debt;

  (v)  The Authorised Borrowing Limit (General Fund and HRA) of £528m for 2012/13 as the statutory limit determined by the Council pursuant to section 3(1) of the Local Government Act 2003;

 (vi)  The Treasury Management Indicators and Prudential Indicators for 2012/13; and

(vii)  The Annual Investment Strategy and creditworthiness policy for 2012/13, which outlined the investments that the Council may use for the prudent management of its investment balances.