Agenda item

The Divisional Director of Finance and Section 151 Officer reported on the Council’s draft Treasury Management Investment Strategy Statement for 2013/14 which set out the proposed borrowing limit for the year and a range of other aspects aimed at ensuring that the Council has prudent and robust arrangements in place to meet all of its financial commitments and responsibilities, in line with the requirements of Section 15(1)(a) of the Local Government Act 2003.

The Divisional Director commented on the Minimum Revenue Policy, Investment and Borrowing Strategies 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 continuing uncertainty in the global economy, including the credit rating downgrades in a number of countries.

Following responses to a number of questions in relation to capital reserves and the effect on investments following the recent announcement in the down grading of the country’s triple A rating, the Assembly have:

APPROVED the Treasury Management Strategy Statement for 2013/14 at Appendix 1 to the report and, in doing so AGREED:

  (i)  The current treasury position for 2012/13 and prospects for interest rates;

  (ii)  The revised Authorised Borrowing Limit (General Fund and HRA) of £502m for 2012/13, which includes an estimated £15m borrowing to finance the 2012/13 Capital Programme;

 (iii)  The Council’s Borrowing Strategy, Debt Rescheduling Strategy and Policy on Borrowing in advance of need for 2013/14, including the effect on treasury management of HRA reform;

 (iv)  The Minimum Revenue Policy Statement for 2013/14 setting out the Council’s policy on repayment of debt;

  (v)  The Authorised Borrowing Limit (General Fund and HRA) of £499m for 2013/14 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 2013/14; and

(vii)  The Annual Investment Strategy and Creditworthiness Policy for 2013/14, which outlined the investments that the Council may use for the prudent management of its investment balances.