Agenda item

Treasury Management Strategy Statement 2019/20


The Cabinet Member for Finance, Performance and Core Services presented the draft Treasury Management Strategy Statement (TMSS) for 2019/20 which set out the Council’s borrowing, investment and funding plans for the year ahead. This report was considered ad endorsed by the Cabinet at its meeting on 18 February 2019.


The Cabinet Member referred to the key issues within the TMSS, which included the new requirement for a Capital Strategy, details of borrowing and investments levels at 31 December 2018, cash balances at 31 March each year since 2015/16 and the medium-term capital finance budget. In respect of the latter, the Cabinet Member confirmed that the increasing amount of General Fund interest payable from 2018/19 to 2022/23 and beyond reflected the significant activity under the Council’s Investment and Acquisition Strategy. 


Reference was made to the importance of effective treasury management in supporting the Council’s ambitious plans and the stretched targets for the Treasury section in respect of achieving interest on the Council’s General Fund cash balances.  In respect of the Housing Revenue Account (HRA) and the announcement by the Prime Minister in October 2018 that the debt cap was to be abolished, the Cabinet Member advised that details were still awaited of when that change of policy would come into effect and the practical implications for local authorities.


Members were pleased that the authority was sustaining a prudent financial approach although were also concerned about the financial viability of the Council in the event of a no-deal Brexit.


The Leader recorded his thanks to the Cabinet Member for his hard work and for presenting this and the other financial and budgetary reports to Assembly at tonight’s meeting.


The Assembly resolved to adopt the Treasury Management Strategy Statement for 2019/20 and, in doing so, to:


(i)  Note the current treasury position for 2019/20 and prospects for interest rates, as referred to in section 7.2 of the report;


(ii)  Approve the Annual Investment Strategy 2019/20 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 2019/20 to 2023/24, as set out in Appendix 2 to the report;


(iv)  Note the inclusion of the Capital Strategy 2019/20, incorporating the Investment and Acquisitions Strategy, as set out in Appendix 3 to the report;


(v)  Approve the Capital Prudential and Treasury Indicators 2019/20 – 2022/23, as set out in Appendix 4 to the report;


(vi)  Approve the Minimum Revenue Provision Policy Statement for 2019/20, representing the Council’s policy on repayment of debt, as set out in Appendix 5 to the report;


(vii)  Note that a review of the Minimum Revenue Provision Policy Statement was to be carried out and any amendments reported back as part of the Treasury Outturn Report for 2018/19;


(viii)  Approve the Operational Boundary Limit of £1.002bn and the Authorised Borrowing Limit of £1.102bn for 2019/20, 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


(ix)  Delegate authority to the Chief Operating Officer, 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.

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