Issue - meetings

To recommend to Council the approval of the Treasury Management Strategy 2024/25, including its Annual Investment Strategy, Prudential Indicators and Minimum Revenue Provision (MRP) policy.

The Executive considered a report in respect of the Annual Treasury Management Strategy, including Prudential Code Indicators for 2024/25, for onward recommendation to Council.

The Strategic Director (CF) referred to two corrections to the report, as follows:

·     Paragraph 4.1.1 - the sentence should read that the returns on investments had averaged 5%, not 3.48%, and the total interest earned was £1.9Million and not £1.29Million; and

·     The table in Paragraph 4.15.1 should read that the total Housing Revenue Account (HRA) loans equalled £233.231Million and not £234.231Million, and the total Public Works Loan Board (PWLB) debt at 31 December 2023 equalled £234.987Million and not £224.987Million.

It was RESOLVED that the 2024/25 Treasury Management Strategy be recommended to Council for approval.

Reason for Decision:  As contained in report.

Other Options considered:  As contained in report.

The Executive considered a report in respect of the Annual Treasury Management Strategy, including Prudential Code Indicators for 2024/25, for onward recommendation to Council.

In the absence of the Portfolio Holder for Resources and Transformation, the Deputy Leader advised that there had been no breaches of the Treasury Management Strategy so far in 2023/24, and the report highlighted the Council’s investments and borrowing and how they were managed.

The Deputy Leader stated that the returns achievable on the Council’s investments were based on the current Bank of England base rate and the risk appetite of the Treasury Management Strategy, which was compliant with the advice from the Council’s treasury advisors, Link Asset Management.

The Deputy Leader commented that there were no changes recommended for counter party limits, as the existing limits had allowed the Council to remain flexible with respect to volatile cash balances (held by the Council on a short-term basis).

In considering the Council’s level of cash balances, the Deputy Leader asked Members to note that the General Fund Medium Term Financial Strategy and Capital Strategy had a planned use of resources over a minimum of 5 years and the HRA Business Plan (HRA BP) had a planned use of resources over a 30-year period, which meant that, whilst not all of the funds were committed in the current year, they would be required in future years.

The Executive noted that the Treasury Management Strategy was in line with the latest CIPFA Treasury Management and Prudential Codes issued in December 2021.

The Strategic Director (CF) referred to two corrections to the report, as follows:

·     Paragraph 4.1.1 - the sentence should read that the returns on investments had averaged 5%, not 3.48%, and the total interest earned was £1.9Million and not £1.29Million; and

·     The table in Paragraph 4.15.1 should read that the total Housing Revenue Account (HRA) loans equalled £233.231Million and not £234.231Million, and the total Public Works Loan Board (PWLB) debt at 31 December 2023 equalled £234.987Million and not £224.987Million.

It was RESOLVED that the 2024/25 Treasury Management Strategy be recommended to Council for approval.

Reason for Decision:  As contained in report.

Other Options considered:  As contained in report.