Decision details

The Strategic Director (CF) presented a report in respect of the Annual Treasury Management Strategy including Prudential Code Indicators for 2022/23.

In response to a series of Member’s questions, the Strategic Director (CF) advised:

·        like most local authorities, SBC carried out most of its borrowing with the Public Works Loan Board (PWLB), which was one of the cheapest forms of borrowing;

·        the Government consultation on Minimum Revenue Provision (MRP) had arisen due to its concern that a number of local authorities had borrowed in order to invest in commercial property.  The Government was tightening up this process, as it felt that a number of Councils were avoiding MRP processes due to them establishing wholly owned companies (for example, for the building of housing);

·        much of the Council’s borrowing was at fixed rate, as certainty was required regarding the level of repayment. In terms of Council investments, these were deposited with a variety of counterparties, some at fixed and others at variable interest rates.  Prudently, the Council did not rely on investment income to prop up its balances; and

·        there was very little internal borrowing at SBC.  Generally, this would only be considered if there was a pressing short-term need.

It was RESOLVED that the Executive be requested to recommend to Council:

1.          That the Annual Treasury Management Strategy 2022/23, as set out at Appendix A to the report, be approved.

2.          That the Prudential Indicators for 2022/23, as set out at Appendix C to the report, be approved.

3.          That the Minimum Revenue Provision (MRP) policy, as set out at Appendix B to the report, be approved.