Issue - meetings

The Cabinet Member for Finance, Growth and Investment presented a report on the Treasury Management Strategy Statement Mid-Year Review 2016/217.

The Assembly were advised that regulation changes had placed greater onus on elected Members in respect of review and scrutiny of treasury management policy and activities.  This mid-year review report was important in that respect as it provided details of the mid-year position for treasury activities and highlighted compliance with the Council’s policies previously approved by the Assembly.

The Assembly agreed the Treasury Management Strategy Statement for 2016/17 on 25 February 2016 which incorporated the Prudential Indicators.  This report, which was presented to and endorsed by the Cabinet at its meeting on 15 November 2016, updated Members on treasury management activities in the current year.

The Cabinet Member highlighted some of the key issues in the report, advising of external factors following the referendum held on 23 June 2016 which included sterling falling dramatically and the Bank of England cutting the Base Rate to 0.25%. 

In response to questions from Assembly on borrowing, the Cabinet Member advised that there were no plans to borrow up to the Councils limits.  The Council had been advised that the Lender Option Borrower Option (LOBO) loan with Barclays had changed terms which were not advantageous for the Council.  Further options had been explored and it was noted the Housing Revenue Account (HRA) had the ability to borrow £10m.  Finally, the Cabinet Member advised that all reserves together for the Council currently totaled £41m.

The Assembly resolved to:

(i)  Note the Treasury Management Strategy Statement Mid-Year Review 2016/17;

(ii)  Note that the Council complied with all 2016/17 treasury management indicators during the first half of the 2016/17 financial year;

(iii)  Note that the value of investments as at 30 September 2016 totalled £259.0m;

(iv)  Note that the value of long-term borrowing as at 30 September 2016 totalled £454.9m, comprising market, PWLB and EIB loans; and

(v)  Note that the value of short term borrowing as at 30 September 2016 totalled £63.9m.