Issue - meetings

The Cabinet Member for Finance, Performance and Core Services presented the draft Treasury Management Strategy Statement (TMSS) for 2021/22 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 15 February 2021.

The Cabinet Member highlighted that there was a significant expected increase in debt of £950m relating to the portfolio of housing schemes within Be First.  Nearly 4,400 properties were being delivered for residents through Be First, which would also bring additional income to the Council through the Council Tax.

The Cabinet Member also referred to the potential to deliver another 9,000 new homes in the next decade, which would need significant funding.  To that end, the Cabinet Member advised that he was aware that there was not limitless access to funds and, therefore, the Council were being prudent with investments.

The Assembly resolved to adopt the Treasury Management Strategy Statement for 2021/22 and, in doing so:

(i)  Noted the current treasury position for 2021/22 and prospects for interest rates, as referred to in sections 4 and 8 of the report;

(ii)  Approved the Annual Investment Strategy 2021/22 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)  Approved the Council’s Borrowing Strategy 2021/22 to 2023/24, as set out in Appendix 2 to the report;

(iv)  Noted that the Capital Strategy 2021/22, incorporating the Investment and Acquisitions Strategy, shall be updated and presented for approval in April 2021;

(v)  Approved the Capital Prudential and Treasury Indicators 2021/22 to 2023/24, as set out in Appendix 3 to the report;

(vi)  Approved the Minimum Revenue Provision Policy Statement for 2021/22, representing the Council’s policy on repayment of debt, as set out in Appendix 4 to the report;

(vii)  Approved the Operational Boundary Limit of £1.70bn and the Authorised Borrowing Limit of £1.80bn for 2021-22, 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)  Delegated authority to the Finance Director, 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 short-term cash held from borrowing.

The Cabinet Member for Finance, Performance and Core Services introduced a report on the Treasury Management Strategy Statement 2021/22 which set out the Council’s borrowing, investment and funding plans for the year ahead.

Cabinet resolved to recommend the Assembly to adopt the Treasury Management Strategy Statement for 2021/22 and, in doing so, to:

(i)  Note the current treasury position for 2021/22 and prospects for interest rates, as referred to in sections 4 and 8 of the report;

(ii)  Approve the Annual Investment Strategy 2021/22 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 2021/22 to 2023/24, as set out in Appendix 2 to the report;

(iv)  Note that the Capital Strategy 2021/22, incorporating the Investment and Acquisitions Strategy, shall be updated and presented for approval in April 2021;

(v)  Approve the Capital Prudential and Treasury Indicators 2021/22 to 2023/24, as set out in Appendix 3 to the report;

(vi)  Approve the Minimum Revenue Provision Policy Statement for 2021/22, 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 £1.70bn and the Authorised Borrowing Limit of £1.80bn for 2021-22, 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 Finance Director, 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 short-term cash held from borrowing.