Issue - meetings

Further to Minute 61 (22 February 2017), the Cabinet Member for Finance, Growth and Investment presented the mid-year progress report in respect of the Council’s treasury management activities during the current financial year.

The Cabinet Member referred to the Bank of England’s recent decision to increase the UK interest rate by 0.25% and advised that more information on the effect on the Council’s investments and borrowing would be included in the February 2018 report.  The future plans for the Borough relied heavily on the success of the Council’s Investment and Acquisition Strategy and the Cabinet Member referred the revised net financing need for the year and Capital Financing Requirement as at 30 September 2017, set out at tables 3 and 4 in the report, which reflected that the Council continued to operate within the operational boundary limit for borrowing.

The Cabinet Member alluded to the Chancellor’s Autumn Budget Statement, which had been made that day, and expressed his concerns that the budget lacked substance and did not address issues such as additional social care funding.

The Assembly resolved to:

(i)  Note the approval of a loan of up to £595,000 for Barking & Dagenham Trading Partnership, as detailed in paragraph 6.5 of the report; and

(ii)  Note the delegated authority to the Chief Operating Officer, in consultation with the Cabinet Member for Finance, Growth and Investment, to agree contractual terms, including the rate, duration and security as part of the loan agreements to Barking & Dagenham Trading Partnership;

(iii)  Note the Treasury Management Strategy Statement Mid-Year Review 2017/18;

(iv)  Note that in the first half of the 2017/18 financial year the Council complied with all 2017/18 treasury management indicators;

(v)  Note the value of investments at 30 September 2017 totalled £250.5 million;

(vi)  Note the value of long term borrowing at 30 September 2017 totalled £502.2m, comprising market, PWLB and EIB loans;

(vii)  Note the value of short term borrowing at 30 September 2017 totalled £70.0m; and

(viii)  Agree the revised Minimum Revenue Provision Policy Statement in Appendix 1;

Further to Minute 97 (13 February 2017), the Cabinet Member for Finance, Growth and Investment presented the mid-year progress report in respect of the Council’s treasury management activities during the current financial year.

The Cabinet Member alluded to the Bank of England’s recent decision to increase the UK interest rate by 0.25% and advised that more information on the effect on the Council’s investments and borrowing would be included in the February 2018 report.  The future plans for the Borough relied heavily on the success of the Council’s Investment and Acquisition Strategy and the Cabinet Member referred the revised net financing need for the year and Capital Financing Requirement as at 30 September 2017, set out at tables 3 and 4 in the report, which reflected that the Council continued to operate within the operational boundary limit for borrowing.

The Cabinet Member also referred to a proposed additional loan of £595,000 to Barking & Dagenham Trading Partnership, the formal business name of the Council’s Traded Services delivery model, to provide start-up capital and cover initial set-up and governance costs.

The Cabinet resolved to:

(i)  Approve a loan of up to £595,000 for Barking & Dagenham Trading Partnership, as detailed in paragraph 6.5 of the report; and

(ii)  Delegate authority to the Chief Operating Officer, in consultation with the Cabinet Member for Finance, Growth and Investment, to agree contractual terms, including the rate, duration and security as part of the loan agreements;

The Cabinet resolved to recommend the Assembly to:

(iii)  Note the Treasury Management Strategy Statement Mid-Year Review 2017/18;

(iv)  Note that in the first half of the 2017/18 financial year the Council complied with all 2017/18 treasury management indicators;

(v)  Note the value of investments at 30 September 2017 totalled £250.5 million;

(vi)  Note the value of long term borrowing at 30 September 2017 totalled £502.2m, comprising market, PWLB and EIB loans;

(vii)  Note the value of short term borrowing at 30 September 2017 totalled £70.0m; and

(viii)  Agree the revised Minimum Revenue Provision Policy Statement as set out at Appendix 1 to the report.